Elon Musk eyes space-based solar power for AI future

As global competition in artificial intelligence intensifies and electricity demand surges, tech billionaire Elon Musk is reportedly exploring space-based solar power as a future energy solution.

A recent analysis by TechCrunch said Musk’s focus appears to be shifting from conventional Earth-based solar systems toward generating solar energy in space.

Musk’s company Tesla has long promoted the idea of a “solar electric economy” through electric vehicles and renewable energy solutions. However, reports suggest that his AI company xAI is currently relying on natural gas-powered turbines to operate data centers.

According to the report, xAI is already using large numbers of gas turbines and may invest around $2.8 billion in additional gas-based power equipment in the future.

Meanwhile, SpaceX recently highlighted the potential of space-based solar power in a company document, claiming that solar panels in orbit could generate nearly five times more energy than those on Earth due to uninterrupted sunlight exposure.

Analysts believe Musk could eventually consider placing AI data centers in space to reduce land use, environmental constraints and local opposition on Earth.

Experts, however, warn that building and maintaining data centers in space would be technologically complex and extremely expensive.

Global electricity demand from AI infrastructure is expected to rise sharply in the coming years. Current data centers worldwide consume around 40 gigawatts of electricity, a figure analysts believe could eventually reach the terawatt scale.

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Critics argue that Earth-based renewable energy still holds enormous untapped potential and say greater investment in clean energy on Earth should remain the priority before moving large-scale energy projects into space.