Elon Musk’s SpaceX is pursuing an ambitious plan to deploy satellites that would function as data centers in orbit.
OpenAI CEO Sam Altman, however, says the concept isn’t realistic — at least not yet. Speaking at a live event in New Delhi, he called the idea “ridiculous” under current conditions, drawing laughter from the audience.
Altman acknowledged that orbital data centers might eventually become viable, but said today’s launch costs and the technical challenge of repairing hardware in space make the concept impractical. “We are not there yet,” he said, adding that such infrastructure is unlikely to matter at scale this decade.
Musk appears to disagree. While major tech firms are pouring billions into building data centers on Earth, he has set his sights on space. At a recent xAI meeting, Musk outlined a vision for a constellation of up to one million satellites operating as orbital data centers. SpaceX has already begun hiring engineers for the project and says integrating xAI will accelerate development.
Other tech leaders are exploring similar ideas. Google’s Project Suncatcher, unveiled in late 2025, aims to develop solar-powered space-based data centers, with the possibility of launching as early as 2027.
The push toward alternative infrastructure comes as traditional data centers face mounting criticism. They consume vast amounts of water and electricity, strain local power grids, and raise environmental concerns.
By the end of 2024, more than 1,200 new data centers had been approved across the US — nearly four times the number in 2010 — prompting growing resistance from communities in states like Texas and Oklahoma.