AUSTIN — SpaceX filed an application with the Federal Communications Commission (FCC) in January for a constellation of up to one million satellites. The FCC application stated the satellite constellation would serve as the foundation for an orbital AI data center.

SpaceX CEO Elon Musk stated at an event in Austin, Texas, that space-based, solar-powered data centers will be more cost-effective than terrestrial ones within two to three years. "Increasing power on Earth becomes harder over time and more expensive over time," Musk said, "but in space it becomes actually cheaper and easier over time." SpaceX declined to elaborate on its plans for orbital data centers or Terafab.

Jeff Bezos said in a CNBC interview that building data centers in space is "very realistic." However, he added that timelines of two or three years for space-based data centers are "probably a little ambitious." Duncan Davidson, a partner, said on CNBC's "The Exchange" that data centers in space are "the big, long-term play." Davidson also noted that "economically, right now, it is marginal."

Several factors are involved in space-based power and cooling. The best solar cells available today can convert only about half the sunlight that hits them to electricity. Additionally, removing 10 megawatts of waste heat in space can require radiator surfaces comparable to the size of two football fields. The cold background of space is near minus 455 degrees Fahrenheit, or minus 270 degrees Celsius. On Earth, data center operators typically replace or upgrade hardware every three to five years.