AI is running out of power. Space won’t be an escape hatch for decades

Fortune

by Sharon Goldman

February 19, 2026

AI-Generated Deep Dive Summary

AI is facing a critical power challenge as its energy demands grow rapidly, with data centers already accounting for about 4% of U.S. electricity use and projected to double by 2030. The industry’s reliance on massive computing power for AI models has pushed hyperscalers like Nvidia and Meta to seek alternative solutions, including building gas plants, exploring small nuclear reactors, and even turning to space-based data centers powered by solar energy. While tech giants like Elon Musk argue that orbital computing could become cost-effective within a few years, experts caution that meaningful scale is decades away due to technical, logistical, and economic barriers. The idea of space-based data centers isn’t new but has gained urgency as the power crunch intensifies. Companies like Starcloud are exploring small-scale pilots, while former tech leaders such as Eric Schmidt and Sundar Pichai are also turning their attention to orbital computing. Despite these efforts, current constraints—such as power generation, heat dissipation, launch logistics, and high costs—make large-scale space-based solutions impractical for now. For businesses, the stakes are high. AI is becoming increasingly essential for innovation and competitiveness, but its energy demands could strain global infrastructure. While space-based solutions may offer long-term potential, the focus remains on terrestrial investments in data centers and power generation to meet immediate needs. Hyperscalers are already projected to spend over $5 trillion globally by the end of the decade, with demand for data-center power expected to surge 165% by 2030. The appeal of space-based computing lies in its theoretical feasibility—launching rockets, building solar arrays, and mass-producing spacecraft are all achievable goals. However, scaling these efforts to match the pace of AI’s hyper-growth is another matter entirely. Engineers may eventually overcome technical hurdles, but the timeline remains uncertain. For now, businesses must navigate the realities of Earth-based infrastructure while weighing the speculative benefits of space-based solutions. In summary, while space offers a promising vision for future AI computing, it remains a distant prospect. Businesses must focus on current strategies to address the power crisis, balancing immediate needs with long-term innovation. The race to solve AI’s energy dilemma will shape not only technology but also global economics and infrastructure for years to come.

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Originally published on Fortune on 2/19/2026