Longer version: Are data centers in space a pie in the sky?

Longer version of space data centers

Are data centers in space a pie in the sky?

It's no secret that data centers have huge appetites for cash, land, electricity, and water — just like it's no secret that something has to change to sustain the AI-fueled demand for information processing. Some tech industry titans think the solution might be to dispense with Earth altogether and send data operations into the chilly vacuum of space. But according to Sherwood, the big banks that would finance these giant leaps for mankind will need a little convincing before they sign on.

According to Forbes, space-based data centers are intended to bypass earthly restraints like finite power and water and physical space, and will instead rely on high-octane solar power and the extreme cold. Since electricity and cooling make up the lion's share of a data center's expenses, a space-based data center would be cheaper over time — or so the theory goes.

But Deutsche Bank analysts, along with numerous scientists and other experts, aren't buying it, at least not yet. Analyst Edison Yu pointed out that the current cost of launching materials into space (about $1,500 per kilogram) wrecks the investment math, and space startups like SpaceX still lack the operational capacity to sustain regular successful launches.

Moreover, while it's true that space is cold, that doesn't mean it can effectively cool a data center. Any satellite data center would likely require special radiator technology — which doesn't exist yet — to actually harness the cold. Temperature can also fluctuate in orbit depending on an object's position relative to the Sun. According to American Military University, the International Space station records exterior temperatures from -250 degrees Fahrenheit in shadow to 250 degrees in direct sunlight.

There's also the nagging problem of depreciation and repair — an expensive and potentially unsustainable issue down here that might just get worse in space. Chips would degrade faster amid constant assault from cosmic radiation, and potential solutions like encasing servers in lead or aluminum would increase the satellite's weight. And if something breaks, there are no quick or cost-effective ways to repair it with currently available technology.

But Deutsche Bank isn't entirely pessimistic. Yu concludes that the entire endeavor is still possible, but will require some actual human know-how to solve the myriad engineering problems.