Orbital datacenters are a pie-in-the-sky idea: Gartner
The Register
February 25, 2026
AI-Generated Deep Dive Summary
Gartner has dismissed the idea of orbital datacenters as "peak insanity," arguing that the concept is economically unfeasible and technically challenging. The analyst firm claims that orbiting datacenters cannot meet Earth's computing needs for decades, if at all, due to prohibitive launch costs and the difficulty of maintaining servers in space. While companies are pouring money into this "bubble," Gartner warns that the technology is not yet viable for terrestrial applications.
The challenges of operating in space include extreme temperature fluctuations—ranging from 100 degrees Kelvin to 400 degrees Kelvin—and the need for specialized components, such as solar panels and cooling systems like ammonia piping, which are thousands of times more expensive than their Earth-based counterparts. Additionally, repairing or maintaining these datacenters would require sending engineers into space, a capability that currently does not exist. Gartner also critiques the idea of using lasers to transmit data from orbit, citing issues with inconsistent data transfer caused by atmospheric conditions.
Despite these criticisms, Gartner does not entirely dismiss orbital datacenters for niche applications in space itself, such as processing satellite imagery or managing communication networks. However, for Earth-based computing needs, Gartner recommends focusing on more practical solutions like underwater datacenters, Arctic installations, or desert-based facilities. These alternatives are far more cost-effective and feasible than investing in the "hype" of orbital datacenters.
This matters to tech readers because it highlights the importance of prioritizing realistic and sustainable solutions for scaling computing power. While space-based datacenters may have potential for future use cases, they are not a viable replacement for Earth-based infrastructure anytime soon. Companies should focus on proven technologies like Microsoft's underwater datacenter projects or Iceland's geothermal facilities to meet their growing computational demands.
By debunking the orbital datacenter "hype," Gartner emphasizes the need for grounded innovation and practical planning in the tech industry. As product leaders navigate the challenge of scaling datacenter capacity, understanding the limitations of emerging technologies is crucial to avoiding wasted resources and ensuring reliable computing power for the future.
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Originally published on The Register on 2/25/2026