When nobody lets you build a land data center they're going to make a lot of sense.
Instead of installing MWs of illegal gas generation and also still causing local electricity rates to spike, why not arrange to buy down the electricity of local ratepayers and also comply with existing laws & regulations?
It's worth asking why operators aren't doing that yet. I suspect it's because neither OAI nor Anthropic have an extra $50B-$100B to put out at the moment. We'll see what happens post-IPO.
The worst that would happen is that it becomes difficult to build in convenient places. That certainly would be annoying. But the problem with space as the solution is that space is by far the least convenient place imaginable, with the possible exception of the bottom of the deep ocean.
In space you can just start. Nobody is really going to stop you.
(I know nominally they’re not visible but they are shortly after launch while moving into position, and at large scale that would be happening all the time, not to mention the other side of burning up in the atmosphere after a few years)
Well played sir, well played.
“I can do it in this challenging environment or I can not do it at all” is kind of a false choice if you think AGI is imminent. Personally, I think we’re already there for KVM stuff, it’s just the goal posts are accelerating at an exponential rate the same with the capabilities.
If you assume we aren't going to create a singularity in the next few decades, then no, it doesn't make sense economically to do it. Even ignoring that we'd have to develop a design that works in space, and even if SpaceX is able to significantly reduce cost per kg to orbit, it would still cost 15-30x more to build the same data center, and you have to pay that premium every time a piece of equipment burns out.
It would be cheaper to build aircraft carrier sized ships to hold them or give every adult in the town where they are building a couple million dollars to fuck off. And again, that's only if SpaceX can produce an as-of-yet mythical level of scale. If they stop anywhere short of that, then we're talking about billions of dollars to build in space what you could build on earth for tens of millions.