Jeff Bezos has described a real shift in how AI data centers could be built: giant gigawatt data centers in space, powered by solar energy around the clock, that could beat the cost of terrestrial data centers in the next couple of decades.
Space-based data centers would be easier to operate, but they cost much more to deploy because all the equipment has to be launched. Bezos is counting on launch costs falling dramatically over the coming decades. This push toward space-based data centers is one reason we like SpaceX, and we bought additional shares before the IPO once Elon Musk pointed to it as one of SpaceX’s next phases.
Key points
- Bezos expects gigawatt-scale data centers in space, powered by 24/7 solar.
- Deployment costs are high, so falling launch costs are the key assumption.
- Ticker Tape bought additional SpaceX shares before the IPO partly on this thesis.
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