Analysts are raising serious cost concerns over plans discussed by SpaceX to place large-scale data centers in orbit to support artificial intelligence workloads. The idea, outlined publicly by Elon Musk, envisions satellites acting as space-based computing hubs powered mainly by solar energy rather than ground-based electricity grids.
How The Orbital Data Center Concept Works
The proposal depends on an unprecedented satellite network designed to handle AI processing in space.
Key assumptions highlighted by analysts include:
- Up to one million satellites deployed as orbital data centers
- Continuous manufacturing of hundreds of thousands of satellites per year
- Thousands of annual launches using the Starship system
- Dozens of new Starship vehicles built each year despite reusability
- Estimated costs and challenges
Estimated Costs and Challenges
Based on these assumptions, analysts estimate total annual costs could reach $5 trillion.
| Factor | Cost Pressure |
| Satellite production | Extremely high volume requirements |
| Launch cadence | Thousands of missions per year |
| Vehicle replacement | Ongoing Starship construction |
| Operations | Limited repair and maintenance options |
Experts also point to technical risks such as radiation exposure, heat management and minimal in-orbit servicing.
Economic Skepticism Remains
Many analysts question whether orbital data centers can compete with rapidly improving Earth-based facilities on cost or reliability. At the same time, SpaceX is deepening ties with xAI, signaling broader ambitions to merge space infrastructure with AI development, even as doubts about economic feasibility persist.
