In the next five years there will be more data centers in space than on Earth, says Elon Musk

Elon Musk sets goals: space data centers (DCs) will surpass terrestrial ones in five years

The head of xAI and SpaceX Elon Musk has been actively promoting the idea of creating a DC cloud in low Earth orbit over the past months. To accelerate implementation, he merged both companies into one giant startup with an estimated valuation of about $1.25 trillion. According to him, within the next five years computing power in space will exceed that on Earth.

Why space is more profitable
In an interview with *Fortune* Musk explained that operating costs for AI DCs in space would be lower than on Earth. He highlighted several key reasons:

Factor Why it matters Solar energy In space panels work five times more efficiently than terrestrial ones due to the absence of cloud cover and atmospheric pollution. Scalability Space provides more flexible options for expanding computing power. Ground infrastructure limits Current production of gas and wind turbines cannot keep up with AI electricity consumption growth. Cooling reduction Heat is dissipated more effectively in space, so less energy is needed for air conditioning systems.

Planned growth
Musk believes that within 2½–3 years placing DCs in space will become more profitable than on land. According to his forecast, each subsequent rocket will launch more AI capacity than the previous ones.

To achieve this plan, 10,000 rocket launches per year are required—about one every hour (or even more). Last year SpaceX made 165 launches, but the company can scale up to 20–30 Starships per season, and at maximum load—to 30,000 launches a year.

> “SpaceX could become a ‘hyper‑hyperscaler,’ adding annually more computing power than has ever been created on Earth.” – Elon Musk

Current steps
* November – SpaceX launched an orbital test satellite with an AI server from the startup Starcloud.

* Recently – the company applied to the FCC for up to 1 million satellites for space DCs powered by solar panels.

Who else is thinking about space DCs
Musk isn’t alone in this direction.

* OpenAI is considering buying aerospace company Stoke Space.

* Google is conducting its own research on creating a cloud outside the atmosphere.

> “In the public capital market there are 100 times more funds than in the private sector.” – Musk

If financial constraints slow development, the billionaire is ready to overcome them. It’s expected that SpaceX plans to go public mid‑year to raise additional investment for its ambitious projects.

Conclusion
Elon Musk sets a goal: by 2030 space DCs will generate annually more AI capacity than all terrestrial centers combined. To achieve this, mass rocket launches, orbital solar power development, and active fundraising through an IPO are planned. If everything goes according to plan, the next five years could become a turning point for global computing infrastructure.