Elon Musk is pushing to deploy AI data centers in space, arguing orbital facilities powered by solar energy could become cost-effective within two years. SpaceX has filed FCC plans for a million-satellite network, and Musk has said he plans to merge his AI startup xAI with SpaceX to pursue orbital data centers. At Davos, he claimed space would become the lowest-cost location for AI computing within two to three years.

Musk is not alone in exploring this concept. Alphabet CEO Sundar Pichai has mentioned Google's exploration of 'moonshot' space-based data center ideas, while Amazon's Jeff Bezos has suggested orbital facilities could be the next step in space ventures. The push comes amid mounting pressure on the industry to find alternatives to strained earth-based infrastructure, with technology companies projected to spend over $5 trillion globally on terrestrial data centers by 2030.

However, experts remain deeply skeptical about the timeline. While limited orbital computing is technically feasible, challenges around power generation, heat dissipation, launch logistics, and cost make space a poor substitute for earth-based facilities anytime soon. Even SpaceX's own Colossus supercomputer in Memphis, which analysts estimate will cost tens of billions of dollars, represents the current reality of AI infrastructure. The consensus among experts is that small pilot projects may emerge by decade's end, but nothing approaching the scale of today's terrestrial data centers is realistic in the near term.