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Elon Musk Plans Data Centers in Space Because Earth’s Power Grid Sucks

KEY POINTS

  • Elon Musk and SpaceX intend to fund orbiting AI data centers via an upcoming public offering.
  • OpenAI CEO Sam Altman, despite legal battles with Musk, aims to build competing orbital infrastructure through acquiring Stoke Space.
  • Google owns 7% of SpaceX and is invested in rival projects amid a staggering $500 billion AI data center expansion this year.

Elon Musk’s latest scheme involves launching gigantic AI data centers into orbit aboard SpaceX’s Starship, the mega-rocket judged powerful enough to haul bulky cooling systems that Earth-bound rockets can’t lift. With a rumored $1.5 trillion valuation, SpaceX hints it’ll pretend to fix Earth’s overloaded power grids by orbiting AI chips that sunbathe 24/7 in space’s eternal sunlight. Meanwhile, OpenAI’s Sam Altman — too busy suing Musk to collab — plans to buy rival startup Stoke Space to build his own orbital data reptile zoo. Google’s chilling with 7% of SpaceX (valued at $100 billion), sweating bullets over $500 billion in AI expansion on Earth, apparently betting on Musk not to turn outer space into a giant, radioactive hot mess. Musk promises foldable radiators in orbit to keep chips from turning into molten silicon, but skeptics say it’s the engineering equivalent of inventing space-air conditioning. The future is here, just further away and way more expensive.

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Source: Axios | Published: 1/19/2026 | Author: Jim VandeHei