Bezos predicts orbital data centres will outpace Earth’s, even as AI hype sparks bubble warnings
Gigawatt-scale data centres could soon orbit above Earth, powered by uninterrupted solar energy and poised to outperform their terrestrial counterparts, according to Amazon founder Jeff Bezos.
Speaking at Italian Tech Week in Turin, Bezos predicted that within the next 10 to 20 years, technological advances will make space-based data infrastructure both feasible and cost-competitive.
“These giant training clusters, those will be better built in space, because we have solar power there, 24/7. There are no clouds and no rain, no weather,” Bezos stated, as reported by Reuters.
He added, “We will be able to beat the cost of terrestrial data centres in space in the next couple of decades”.
The concept of orbital data centres is gaining momentum among technology giants, as surging demand for electricity and water to cool Earth-based servers drives the search for sustainable alternatives.
Bezos emphasized that this shift is part of a broader trend of using space to enhance life on Earth, citing the evolution from weather and communication satellites to the next frontier: data centres and advanced manufacturing.
However, Bezos acknowledged the challenges of space-based infrastructure, including the complexities of maintenance, upgrades, and the risks and costs associated with rocket launches.
Turning to artificial intelligence, Bezos drew parallels between today’s AI boom and the dot-com era, cautioning that the current excitement may be creating an “industrial bubble.”
As per CNBC, he explained that bubbles often see stock prices “disconnected from the fundamentals” and a rush of funding for both promising and questionable ideas.
“Investors have a hard time in the middle of this excitement, distinguishing between the good ideas and the bad ideas. And that’s also probably happening today,” Bezos remarked.
Nonetheless, he asserted, “AI is real, and it is going to change every industry”.
Despite the risks of speculative excess, Bezos urged optimism, noting that previous industrial bubbles—such as in biotech—ultimately yielded lasting societal benefits.
“When the dust settles and you see who are the winners, societies benefits from those inventions. That is what is going to happen here too. This is real, the benefits to society from AI are going to be gigantic,” he said, as reported by CNBC.
Other industry leaders have echoed these warnings.
According to CNBC, OpenAI CEO Sam Altman and Goldman Sachs CEO David Solomon have both raised concerns about the speculative fervour in the AI sector, suggesting a market reset may be inevitable.
