He’s not alone. xAI’s head of compute has reportedly bet his counterpart at Anthropic that 1% of global compute will be in orbit by 2028. Google (which has a significant ownership stake in SpaceX) has announced a space AI effort called Project Suncatcher, which will launch prototype vehicles in 2027. Starcloud, a startup that has raised $34 million backed by Google and Andreessen Horowitz, filed its own plans for an 80,000 satellite constellation last week. Even Jeff Bezos has said this is the future.
But behind the hype, what will it actually take to get data centers into space?
In a first analysis, today’s terrestrial data centers remain cheaper than those in orbit. Andrew McCalip, a space engineer, has built a helpful calculator comparing the two models. His baseline results show that a 1 GW orbital data center might cost $42.4 billion — almost 3x its ground-bound equivalent, thanks to the up-front costs of building the satellites and launching them to orbit.







