Launching AI into Space? The Real Reason Big Tech is Betting on Satellite Data Centers
Editor
When I first heard about launching data centers into space, I honestly thought it sounded like something out of a sci-fi movie. But as I started reading related articles, I realized this isn’t just a fantasy—it’s a project already in progress. NVIDIA actually launched a satellite equipped with the H100 GPU earlier this month, making me truly feel how rapidly the times are changing.
According to reports, companies like Google, NVIDIA, and StarCloud are competitively diving into building space data centers. The concept of a space data center involves launching satellites loaded with AI chips like GPUs or TPUs into space to perform AI computations. The results are then transmitted to Earth via laser communication between satellites.
What I found most intriguing was the economic analysis. According to StarCloud’s data, operating a 40MW data center on Earth for ten years costs $140 million (approximately 204 billion KRW) just for electricity, whereas a space data center only requires $2 million (about 3 billion KRW) for solar array costs. That’s a staggering 1/70th of the cost, which is an overwhelming difference when you look at the numbers.
The reason for such dramatic cost savings is clear. In space, you can harness unlimited solar energy 24/7 without weather changes like clouds or rain. This is a completely different story compared to terrestrial solar power plants, where power generation fluctuates based on sunlight and weather conditions. Google’s mention that “the sun emits over 100 trillion times the energy of the total human power production” can be understood in this context.
The Space Data Center Race Involving Governments
What’s more surprising is that this isn’t just a game for private companies. In-Q-Tel, a venture capital firm under the CIA, has made a strategic investment in StarCloud, and the European Commission is supporting a French satellite manufacturing company with 2 million euros (about 3.4 billion KRW) to promote government-led space data center development. These moves indicate that governments view this technology not just as a business opportunity but as a strategic asset tied to national competitiveness.
China’s actions are particularly impressive. Through the “Three-Body Computing Satellite Cluster” project, they launched 12 satellites with AI computing capabilities last May, with plans to ultimately build a large-scale space computing network of 2,800 AI satellites. Considering there are currently about 8,000 satellites in Earth’s orbit, this shows how aggressively China is investing in this field.
The United States isn’t sitting idly by. Elon Musk is reportedly preparing a data center model using new solar-powered Starlink satellites. Given that there are currently about 5,000 Starlink satellites in operation, expanding this infrastructure to AI computing seems entirely feasible. Google’s “SunCatcher Project” also aims to realize a space AI computing cluster by 2035, starting with the launch of two test satellites in 2027.
However, despite these rosy prospects, I can’t help but wonder. Is this really feasible both technologically and economically? Can semiconductors function properly in the space environment? Can large volumes of data be transmitted in real-time via satellite communication? Most importantly, considering the costs of satellite launches and maintenance, is it truly economical?
Realistic Challenges and Market Outlook
In fact, the technical challenges faced by space data centers are significant. First, there’s the reliability of semiconductors in the space radiation environment. On Earth, the atmosphere blocks space radiation, but in space, high-energy particles can directly collide with semiconductors, causing errors. Such errors can be critical, especially in precise tasks like AI computations.
Heat management is another major issue. In terrestrial data centers, cooling systems account for 30-40% of total power consumption, but in space, the vacuum environment makes convection cooling impossible. Operating high-performance AI chips stably in an environment where heat can only be dissipated through radiation is indeed challenging.
Nevertheless, the market outlook is quite positive. With the global data center market expected to reach around $250 billion by 2025 and AI workload growth projected at an annual rate of 10-15%, space data centers are gaining attention as an innovative solution to the power cost problem.
Especially as generative AI models become larger and more complex, requiring exponentially increasing computation and power, the infinite solar energy in space could be an incredibly attractive solution. It’s said that ChatGPT alone incurs electricity costs of hundreds of thousands of dollars per day, so reducing these costs to 1/70th could completely change the economics of AI services.
What about the situation in Korea? Although there hasn’t been a specific announcement from the government yet, this could be a new opportunity for satellite-related companies like Korea Aerospace Industries and Satrec Initiative. Considering Korea’s significant competitiveness in semiconductor and AI technology, it seems they could also be competitive in the space data center field.
Personally, I think these developments could go beyond mere technological innovation and change the entire paradigm of the space industry. Until now, space has primarily been focused on communication and observation satellites, but now it’s expanding into computing infrastructure that performs actual computational tasks. This signifies a shift in perspective, viewing space not just as a ‘space’ but as a ‘platform’.
Of course, it’s still in the early stages, and there are many technical and economic challenges to overcome. Although StarCloud’s CEO said, “All new data centers will be built in space within the next 10 years,” we’ll have to wait and see if this becomes a reality. But what’s clear is that multiple global companies and governments are already investing and developing in this area, indicating that space data centers are being recognized as a feasible future technology rather than just an idea.
This article was written after reading “Catch the Sun”… Big Tech Launching Data Centers into Space, adding personal opinions and analysis.
Disclaimer: This blog is not a news outlet, and the content is the author’s personal opinion. The responsibility for investment decisions lies with the investor, and no liability is assumed for investment losses based on the content of this article.
