Elon Musk and the dream of the space data center: reality or daydream?
Elon Musk is not exactly known for thinking small. But the idea of building data centers in orbit is raising eyebrows even among market giants. The founder and CEO of SoftBank, Masayoshi Son, expressed his doubts in a recent meeting, questioning whether this bold vision will actually bring tangible benefits in the short term. He argues that, in the race for supremacy in artificial intelligence, the next few years will be crucial, not a decade from now.
The discussion is not limited to Son. In the TechCrunch podcast "Equity," Kirsten Korosec and Sean O’Kane also addressed the topic. Kirsten highlighted the irony of Son being the skeptic, given SoftBank's history of bold bets. Sean pointed out that, when talking about a constellation of satellites to create an "orbital data center," Musk is actually securing more business for SpaceX. After all, these satellites would need to be periodically replaced, generating a continuous demand for launches.
The idea of space data centers sounds futuristic, but the reality is that the challenges are enormous. The cost of implementation is astronomical (no pun intended), and even if everything works, it is not a solution for immediate computing needs. The industry is starving for processing capacity, but building data centers on Earth is already a challenge in itself. Perhaps space is the answer, but not for now.
SoftBank and its bold bets
It is curious that Son questions Musk, considering that SoftBank has a history of investing in audacious ideas. Who doesn't remember WeWork? The Japanese company is no stranger to risks, but Son's doubt reflects a genuine concern: is it worth investing so much in something that may take years to materialize? While many investors and founders are jumping on the idea of orbital data centers, Son seems to be a voice of caution amid the enthusiasm.
The point is that, although Musk hates bureaucracy and sees space as a field free of restrictions, the economic reality is different. SpaceX's launch business is heavily dependent on Starlink, which raises questions about the viability of expanding into space data centers. Without Starlink, SpaceX's market share would be much smaller.
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