Space Data Centers Face Economic Hurdles Despite Tech Giant Interest
Orbital data centers remain a speculative bet as launch costs eclipse economic viability. BNP Paribas estimates $100B+ price tags for space-based facilities versus $35B-$50B terrestrial alternatives, citing $1,500-$3,600/kg launch expenses that must drop below $300/kg to justify deployment.
Google, Amazon, and Meta emerge as likely first movers for experimental deployments should costs decline. The analysis follows Elon Musk's prediction that space will dominate AI infrastructure within three years, while Nvidia-backed Starcloud's November 2025 GPU launch demonstrates early technical feasibility.
Investment hurdles include radiation-hardened hardware and novel thermal management solutions. 'Not viable near-term,' concludes BNP's Nick Jones, though the bank acknowledges long-term potential as reusable rockets and in-space manufacturing mature.
