The rivalry between tech leaders flared up again as Sam Altman publicly criticized Elon Musk’s plan to move data centers into space. Speaking during a live interview, Altman described the idea as “ridiculous” — at least for now.
During a live interview with local media in New Delhi on Friday, Altman laughed off the concept of placing data centers in orbit.
“I honestly think the idea with the current landscape of putting data centers in space is ridiculous,” he said, prompting laughter from the audience.
Altman acknowledged that orbital data centers could “make sense someday.” However, he stressed that current realities — including high launch costs and the difficulty of repairing computer chips in space — make the idea impractical.
“We are not there yet,” he added. “There will come a time. Space is great for a lot of things. Orbital data centers are not something that’s going to matter at scale this decade.”
Musk’s space ambitions continue
Musk, CEO of SpaceX and founder of xAI, has made orbital infrastructure a key priority.
In February, SpaceX announced plans to launch a “constellation of a million satellites” designed to operate as orbital data centers. The company has already begun hiring engineers to support the initiative.
During an internal meeting with xAI employees, Musk said SpaceX’s acquisition of xAI would help accelerate deployment of these space-based data centers.
Big tech’s growing data center race
While Musk looks skyward, many major tech and AI companies continue investing billions in traditional, Earth-based data centers.
Even so, space-based ambitions are not limited to Musk. Google unveiled Project Suncatcher in November 2025, a plan to eventually place solar-powered data centers in orbit.
Google CEO Sundar Pichai told Fox News Sunday that the company could begin deploying such space-powered facilities as early as 2027.
Why data centers matter — And why they’re controversial
Data centers are critical for powering AI systems, including large language models and chatbots. However, they come with growing environmental and social concerns.
These facilities can consume vast amounts of water, strain electricity grids, increase pollution, and affect local communities.
An investigation by Business Insider found that more than 1,200 data centers had been approved for construction across the United States by the end of 2024 — nearly four times the number approved in 2010.
Proposed campuses in states like Texas and Oklahoma are increasingly facing resistance from local residents concerned about environmental and infrastructure impacts.
