Bezos and Musk Intensify Space Race with Plans for Orbiting Data Centers

The competition between Jeff Bezos and Elon Musk is extending beyond rockets and satellite internet, escalating into a race to build data centers in space. Both Blue Origin and SpaceX are vying to capitalize on the burgeoning demand for AI computing power, proposing massive satellite constellations to host these facilities.

Blue Origin’s Project Sunrise

Blue Origin has filed plans with the Federal Communications Commission (FCC) for “Project Sunrise,” an ambitious undertaking to establish space-based data centers. According to the company, Project Sunrise is designed to serve the growing AI data center market and support the development and use of AI technologies by U.S. Companies. Blue Origin argues that locating compute capacity in orbit will expand overall industry capacity and provide a new source of clean power for compute workloads, while preserving terrestrial infrastructure for other uses. Reuters

The proposal outlines a plan to launch up to 51,600 satellites into sun-synchronous orbits between 500 and 1,800 kilometers above Earth. Data transmission to Earth will rely on optical inter-satellite links (lasers) connecting to Blue Origin’s upcoming TeraWave satellite internet network, which aims to compete with SpaceX’s Starlink and Amazon’s Leo. CNBC

SpaceX’s Orbital Data Center Ambitions

Elon Musk’s SpaceX is also aggressively pursuing orbital data centers, having proposed a constellation of up to 1 million satellites. The FCC has accepted SpaceX’s plan for filing, initiating a public comment period. Reuters

Both companies highlight the potential environmental benefits of shifting AI compute to space, citing the ability to directly harness solar energy. Jeff Bezos stated in October that he envisions building “giant gigawatt data centers in space” capable of outcompeting terrestrial data centers on cost within the next two decades. The Guardian

Competition and Concerns

Blue Origin has actively voiced concerns regarding the scale of SpaceX’s proposal, arguing that deploying up to 1 million satellites would create significant challenges for multiple constellations to coexist in orbit. In a filing with the FCC, Blue Origin criticized SpaceX’s plan as “profoundly disproportionate” and urged the Commission to reject it. Business Insider Amazon, founded by Bezos, also urged the FCC to deny SpaceX’s proposal, citing concerns about monopolizing orbits.

SpaceX responded to these criticisms, asserting that Amazon and Blue Origin lack the experience to accurately assess the feasibility of their own plans. The company dismissed their arguments as “naïve” and “speculative.” Business Insider

The influx of proposals, including an 88,000-satellite constellation from startup Starcloud, raises concerns about light pollution, space safety, and the potential impact on Earth’s atmosphere. Like SpaceX, Blue Origin plans to decommission aging satellites through atmospheric reentry, allowing them to burn up upon de-orbiting. The Guardian

TeraWave and Deployment Timelines

Blue Origin’s TeraWave network, designed for enterprise, data center, and government customers, aims to deploy its first 5,408 satellites in the fourth quarter of 2027. The network is expected to provide data speeds of “up to 6 terabits per second.” CNBC

The FCC’s decision on these applications will be pivotal in shaping the future of space-based data centers and the ongoing competition between Bezos, and Musk.