The real reason why Musk, Bezos and Pichai want to build data centers in space: bypass regulation

The construction of data centers is proliferating so much that although the largest in the world They are in Kolos (Norway), in The Cidatel (United States) and China, you can find them now even in Botorritain the province of Zaragoza. The limit is the sky. Or well, not even that: because Silicon Valley has been put between eyebrows set up data centers in space. And the main big tech companies are making moves to achieve this. Former Google CEO Eric Schmidt bought rocket company Relativity Space with that objective. Nvidia has supported the startup Starcloud in its project to launch the first NVIDIA H100 GPU into space a few weeks ago and Elon Musk has even condensed how he would do it in a tweet: “It will be enough to scale the Starlink V3 satellites, which have high-speed laser links.” He when Jeff Bezos slipped it in a prediction at the Italian Tech Week: We will see “giant training clusters” of AI in orbit in the next 10 to 20 years. The moon is a gift from the universe The next question would be “why?”. The reality is that there is no shortage of reasons. AI is a real energy guzzler and as demand does not stop growingspace offers a couple of differential advantages over Earth: almost unlimited energy and free cooling. On the one hand, in space we have a sun-synchronous orbit where solar panels receive energy almost continuously. On the other hand, you can install a radiator so large that the space functions as a kind of ‘infinite heat sink at -270°C’. The enormous amounts of water essential for cooling on Earth would not be needed. Let’s face it, today there are no plans to have data centers in space. But not too far away: University of Central Florida research professor and former NASA member Phil Metzger esteem that perhaps within a decade it could be economically viable. But its viability is so clear that it considers that taking AI servers into space are “the first real business case that will give way to many more“in the face of a future human migration beyond Earth. So for now, they try it on Earth. Consequence: that Donald Trump declare an energy emergency due to the enormous electricity demand expected for the coming years. As the power grid catches up (or tries to), AI companies have decided to move from a passive to a proactive position: Meta is going to become an electricity marketer. xAI by Elon Musk is using gas turbines as energy sources temporary. OpenAI is pushing to the United States government to lend a hand to electricity companies to add 100 gigawatts per year. That figure doesn’t say much, but it is astronomical: what OpenAI is asking for is that The United States built almost an entire Spain (around 145 GWh considering the 129 GW consolidated at the end of 2024 plus the solar and wind deployment of 2025) every year and a half in terms of infrastructure. AI is growing faster than electrical bureaucracy is advancing How could the Trump Administration help? With the eternal bureaucracy. Because on Earth they face great technical challenges, but they also face a legislative wall. To have more energy, the simplest and most immediate step is to build new power plants, but that means successfully going through the tangle of procedures that slow down the process. There is only one small problem: that in the United States depending on technology, it can take five to ten years… if you’re lucky. Interconnection to the grid alone can take six years, successfully overcoming an interconnection queue with more than 2,000 GW in projects who are already in line. Then, up to four years of federal and environmental permits to end in another couple of years for state and local licenses that must come to fruition. ‘Permit Stack’ they call it. And the journey does not end here: they must also avoid andthe citizen movementNot in my backyard‘ (not in my backyard, kind of like “yes, but not in my house”), which has already backed down the Battle Born Solar Project (Nevada), which was going to be the largest solar plant in the United States, or Danskammer gas station (New York), among others. This can delay the operation even further as rights of way must be negotiated with individual owners who may refuse, going through the courts again. The never ending story. To avoid processes NIMBY that last fifteen years or more, companies like OpenAI or Microsoft are buying plants that already exist, such as Three Mile Island, which is going to reopen only for Microsoftinstead of trying to build new ones from scratch. Amazon has also signed infrastructure that is already on the network like the Talen Energy Campus and it has partnered with Dominion Energy and X-energy to develop mini reactors (SMR). SMRs are also Google’s solution, in this case thanks to an agreement with Kairos Power. Everything is to avoid that tangle of ‘Permit stack’ procedures that in practice and according to estimates, makes it is faster to opt for the space route to build a power plant on the old, familiar Earth. At the end of the day for AI companies “The moon is a gift from the universe”, as already Jeff Bezos glimpsed. In Xataka | Musk has created the perfect circle: Tesla’s megabatteries power the AI ​​that will define its next cars In Xataka | Researchers have dismantled the batteries of Tesla and BYD. You already know which one performs better and is much cheaper. Cover | İsmail Enes Ayhan and NASA

The AI ​​bubble is so obvious that not even Sundar Pichai or Satya Nadella make an effort to deny it

The thing about bubbles is that we are certain that there is one only when they burst. And with all this artificial intelligence, is talking a lot about whether or not there is one around this technology. Of course there are indicators that set off alarm bells, but the curious thing is that we would not have believed that two of the greatest exponents in contributing to the development of this technology would maintain reservations. And Sundar Pichai, for Google, and Satya Nadella, for Microsoft, have not made much effort to deny the doubts. Irrationality. Pichai declared to the BBC in an interview he noted “elements of irrationality” in the current AI market and warned that no company, including Google, will be immune if the bubble bursts. His words are especially striking because they come at a time when Alphabet shares have doubled in seven months, reaching a market capitalization of $3.5 trillion. The CEO compared the situation with the Internet bubble of the late 90s, recognizing that although there was excessive investment that ended in bankruptcies and layoffs, today no one questions the profound impact of the Internet. “I hope AI is the same. I think it’s both rational and there are elements of irrationality in a time like this,” he explained. When the numbers don’t add up. Skepticism is based on concrete data. OpenAI, Google’s most visible competitor in this field, has committed to spending $1.4 trillion in infrastructure for eight years while it expects to generate just $13 billion in revenue this year. Just like share In the Ars Technica media, Sam Altman himself, CEO of OpenAI, acknowledged to journalists in August that investors are “overly enthusiastic” about AI models and that “someone” will lose an “incredible amount of money.” Microsoft also shows the cards. For his part, Satya Nadella has been equally forthright about the current limitations of the sector. At the beginning of the year already pointed out to claim that a milestone has been achieved in AGI (general artificial intelligence) is “just hacking the tests without meaning”, downplaying the benchmarks that so much marketing generates. According to Nadella, the true metric of AI success should be reflected in countries’ gross domestic product: “When we say ‘this is like the industrial revolution,’ we should have that kind of growth that caused the industrial revolution,” he explained, referring to increases of 5-10% in GDP. That growth has not yet come. Jensen Huang says exactly the opposite. While Pichai and Nadella talk about irrationality, NVIDIA founder and CEO Jensen Huang has presented spectacular results in the third quarter and settled the debate in his own way. “There has been a lot of talk about an AI bubble. From our perspective, we see something very different,” he commented. NVIDIA reported revenue of $57 billion in its latest quarter, up 62% from a year earlier, with net profits of $32 billion. Its data center business has generated $51.2 billion, a record boosted by the sale of its Blackwell chips. According to Huang, sales of these GPUs are “skyrocketing” and cloud chips are out of stock. NVIDIA also projects a fourth quarter with revenues of $65 billion. AI still doesn’t make money. NVIDIA does make money, a lot of money, but He does it by selling the shovels during the gold rush. The vast majority of companies that develop large language models are losing money spectacularly. OpenAI is the most obvious examplebut not the only one. Microsoft, Amazon, Meta and Google they are allocating tens of billions of dollars to build data centers dedicated to AI in a colossal bet whose profitability is not guaranteed. For Nadella, what AI needs is something equivalent what Excel and email meant for the PC, that is, an app that makes the majority of users understand how to use AI. At that time we saw that the PC took a long time to find its place, especially until it reached mass adoption that transformed real processes. There are chips but there is no energy to power them. In addition to the profitability problem, there is an immediate physical limitation. Nadella revealed recently that the biggest obstacle is not the lack of chips, but the energy needed to power them. “If you can’t do something like that (supply enough power), you’re going to have a bunch of chips sitting around in inventory that you can’t plug in. In fact, that’s my problem right now: It’s not that I don’t have a sufficient supply of chips: it’s actually the fact that I don’t have places to plug them in,” he admitted. Microsoft, Google and other big technology companies are resorting to drastic solutions such as building their own small nuclear power plants (SMR reactors) to supply their future data centers. ARM CEO Rene Haas noted that energy needs could triplea challenge that calls into question the sustainability of the current expansion. Of course we don’t know how things are going to end, but no one doubts that we’re going to have a good time with it. Cover image | Microsoft and Bloomberg In Xataka | Gemini 3 promises more quality and precision than ever in its responses. The question is whether we will really notice the difference

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