"As the artificial intelligence (AI) boom advances, its vast computational power demands are putting the data centers that house the technology on the path of severe, earthbound limitations: skyrocketing energy consumption that strains electric grids, land scarcity in suitable locations, and regulatory hurdles over its environmental and ethical impacts. Elon Musk proposes a revolutionary fix - moving the data centers to space."
"In a recent post on X, Musk confirmed that his space company SpaceX (SPAX.PVT) "will be doing" data centers in orbit as they have high-speed laser links. It will only require scaling up its Starlink V3 satellites into space-based computing hubs, powered by unlimited solar energy, for efficient, round-the-clock AI operations. This aligns with his vision of AI satellites enabling advanced civilizations, potentially transforming the space economy."
"SpaceX has evolved from a 2002 startup to a powerhouse valued at over $200 billion. Revenue is expected to hit $15.5 billion this year - up around 25% from 2024 - driven by its launch services and the Starlink satellite internet business, which has become a major revenue contributor. Last year, Starlink's growth surpassed the launch services business for the first time ever."
Artificial intelligence growth is driving massive computational demands that stress terrestrial data centers through rising energy use, limited suitable land, and regulatory concerns. Elon Musk proposes relocating data centers to orbit using SpaceX Starlink satellites and high-speed laser links to create space-based computing hubs. Orbiting hubs would leverage abundant solar power for continuous, efficient AI operations and could spur a new space economy centered on AI satellites. SpaceX has grown into a multibillion-dollar company with Starlink becoming a major revenue driver as launch and satellite businesses expand. Retail investors can seek indirect exposure through ETFs and mutual funds.
Read at 24/7 Wall St.
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