Amazon Founder Casts Doubt on Timelines of Orbital Data Centers

Jeff Bezos, the founder of Amazon, has cast doubt on the accuracy of many of the timelines that have been provided by rival companies with ambitions of establishing data centers in outer space.

During an interview with CNBC on Wednesday, Bezos said orbital data centers will become a reality, but added that the 2–3 years being touted before this becomes a reality was overly ambitious. He said data centers will be built in space, but it is hard to predict how quickly that would happen.

Bezos pointed out two roadblocks that stood in the way of data centers being established in space. The first is the high cost of AI chips. He says that these chips are prohibitively expensive to permit data centers to be established in space.

The second bottleneck is the high cost of sending the needed hardware into orbit. The Amazon founder acknowledged that the cost of sending hardware into orbit had reduced in recent years, but it was still so high that it is not yet viable to permit data centers to be set up in space.

He asserted that the timeline of actualizing data centers in space will depend on how quickly the two cost-related roadblocks above are addressed. Until that happens, tech companies will have no choice but to continue expanding their data center footprint on Earth because orbital versions will remain out of reach at the current cost implications.

There are two major factors that make the idea of orbital data centers very attractive. As you may know, terrestrial data centers have taken a lot of flak due to their huge appetite for power, and this has resulted in some communities rejecting the construction of data centers in their areas. Orbital data centers would have access to limitless power in the form of solar energy.

Secondly, terrestrial data centers require large tracts of land for their construction. As the population grows and urbanization accelerates, competition for existing tracts of land is feverish. To make matters worse, some locations are regarded as ecologically sensitive and proposed projects have to be subjected to stringent reviews before getting approval. As it becomes harder to secure land for data center construction, orbital data centers are becoming more attractive because they address this challenge.

As the reality of orbital data centers comes closer, you can bet that firms like Nvidia Corp. (NASDAQ: NVDA) are positioning themselves to be the go-to source of the needed computing hardware that can withstand the punishing conditions in space.

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