Is Space the Final Frontier for Data Centers?

As the rapid growth of artificial intelligence drives demand for energy-, water-, and land-intensive data centers, technology companies are beginning to explore whether some computing infrastructure could be moved into space. This paper examines the emerging field of orbital data centers, from satellites performing specialized computing tasks in low Earth orbit to more speculative proposals for large-scale AI training and lunar data storage. It evaluates whether these systems can overcome fundamental technical and economic barriers, including launch costs, power generation, cooling, latency, radiation, and the difficulty of repairing hardware in orbit. The paper also considers the environmental and social tradeoffs of expanding orbital infrastructure, including rocket emissions, atmospheric pollution, satellite congestion, collision risks, and damage to astronomical observation. It argues that existing governance frameworks are poorly equipped to address the liability, licensing, market concentration, data sovereignty, and international coordination challenges that orbital computing would create. Rather than treating space as an easy escape from the environmental costs of terrestrial data centers, the paper calls for cautious licensing, stronger international rules, and a more complete accounting of who will bear the risks and costs of this emerging infrastructure.

This paper is forthcoming with the Center for International Governance Innovation. Please email me if you would like an advanced copy.