Elon Musk, who leads SpaceX, Tesla and xAI, has outlined plans to build space data centers capable of generating 1 GW of AI computing capacity annually by next year. [Reuters]
Elon Musk, who leads SpaceX, Tesla and xAI, has outlined plans to build space data centers capable of generating 1 GW of AI computing capacity annually by next year. [Reuters]

Elon Musk has shared more detailed plans to build a 1 GW data center in space by 2027, offering a clearer picture of his vision for an orbital AI computing infrastructure.

Musk posted a 31-minute video on his social media platform X, formerly Twitter, filmed Monday at a Starlink terminal factory in Bastrop, Texas, in which he explained his concept for a space-based data center.

"There's no 'magic' required for AI satellites that doesn't already exist," he said. "A significant portion of the technology already developed for the Starlink V3 satellite will be used. Compared to what we're already doing, this isn't a particularly difficult problem."

Musk also unveiled a prototype design for the first AI satellite, dubbed "AI1," alongside SpaceX engineer Ian Dahl. Each AI1 satellite can deliver up to 150 kilowatts of computing power, with a wingspan of roughly 70 meters — comparable to the computing capacity of a single Nvidia GB300 rack used in ground-based data centers.

Musk said AI satellites are simpler in structure than existing Starlink satellites, making them easier to mass-produce. The satellites can be interconnected using laser links already proven on Starlink, and connections between AI satellites and Starlink satellites are also possible. Next-generation Starlink satellites will support bandwidth of 1 terabit per second per link.

Musk also cited power and cooling advantages as evidence that the concept is feasible. "Space is always sunny," he said, adding that beyond the atmosphere, solar radiation is about 36 percent greater than on the ground, with no losses from clouds or the atmosphere.

According to a SpaceX investor presentation, the cost of electricity — based on the raw material cost of solar cells — could be brought down to $0.002 per kilowatt-hour, roughly one twenty-second of the US wholesale electricity price of about $0.045 per kilowatt-hour. SpaceX added that radiative cooling in space allows heat generated by data center operations to be dissipated without coolant.

"The point at which deploying AI in space becomes cheaper than on the ground will come much sooner than most people expect," Musk said. "I think it'll happen in two or three years."

Musk said he aims to deploy 1 GW of AI computing capacity in space by the end of next year, then scale it up tenfold each year until it reaches the terawatt level.

The space data center project is also tied to Musk's own compensation. In March, SpaceX's board included a condition in one of his performance pay packages requiring the space data center to achieve 100 terawatts of annual AI computing capacity — equivalent to 100,000 nuclear power plants — alongside certain company valuation targets. If met, Musk would receive an additional 60.4 million shares.

Despite Musk's elaborations, skepticism about the space data center concept persists. Amazon founder Jeff Bezos, who leads Blue Origin, has questioned the practicality of the idea, citing the cost of AI chips and launch expenses.

Researcher Andrew McCallip also concluded that a space data center "does not make economic sense for the time being." Industry analysis puts the cost of building a 1 GW space data center at roughly $42.4 billion (about 58 trillion won), three times the cost of a ground-based facility. To achieve economic viability, launch costs — currently $3,600 per kilogram — would need to fall to $200 per kilogram, one-eighteenth of the current rate.


kate01@heraldcorp.com