Space Data Centers: Reality Check Amidst Musk-Altman Feud

The viability of space data centers, a concept significantly contributing to SpaceX's substantial valuation, is being questioned by industry experts. Despite projections of unprecedented orbital processing power for AI models and cloud services, the current reality suggests these ventures are not feasible in the near term. Significant advancements in rocket affordability and high-volume satellite manufacturing are prerequisites for making space data centers a serious business.

SpaceX's Starship program holds the key to potentially lowering launch costs. However, even if test flights prove successful, achieving operational reusability and large-scale satellite deployment is expected to take years. Furthermore, SpaceX's immediate priorities include commitments to NASA and expanding its Starlink network. Initial assessments suggest that achieving economical space data centers might not be possible until the 2030s, contingent on overcoming substantial technological and manufacturing hurdles, including the eventual full reusability of Starship's stages.