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The cloud's future lies in space

Published: 17 Mar. 2025, 00:01

Kim Seung-jo

The author is professor emeritus at Seoul National University.

Amazon Web Services (AWS), the world’s largest cloud service provider, recorded $107.6 billion in revenue last year, a 19 percent surge from 2023. Anticipating a sharp rise in demand for high-performance data centers fueled by the generative AI boom, Amazon is planning an enormous capital expenditure investment of up to $100 billion this year. Market forecasting agencies in the United States predict that the global data center market will grow at an average annual rate of 16.5 percent, reaching an estimated $2.3 trillion by 2032.

The challenges of large-scale data center deployment

Despite skyrocketing demand for high-performance data centers driven by AI computing needs, several formidable obstacles stand in the way of their widespread deployment.

The first is the enormous increase in electricity demand. According to the International Energy Agency (IEA), data centers accounted for about 2 percent of global electricity consumption in 2022, a figure expected to double by 2026. Such massive energy requirements will inevitably necessitate the expansion of power generation facilities, running counter to global efforts to achieve carbon neutrality.

Naver's data center complex situated at Chuncheon, Gangwon. [NAVER]

The second challenge is excessive water consumption for cooling computing systems, which could strain local water resources. As water scarcity intensifies globally, large-scale water use is unlikely to be welcomed.

The third issue is the environmental impact. The vast amounts of heat generated by cooling systems contribute to the heat island effect, while the discharge of high-temperature water into rivers and oceans disrupts ecosystems. Given these complications, opposition to data center construction is making site selection increasingly difficult worldwide.

A space-based data satellite rendering of U.S. startup Lumen Orbit. [LUMEN ORBIT]

A disruptive solution: Space-based data centers

Is there a way to overcome these challenges through technological innovation? Fortunately, advances in space technology — pioneering a new era of disruptive innovation — offer a groundbreaking solution: deploying large-scale cloud data centers in Earth’s orbit.

These space-based data centers would be powered by solar energy harvested in space, utilizing in situ resource utilization (ISRU) through space-based solar power. This environmentally friendly approach would contribute to carbon neutrality on Earth. The cooling challenge could also be addressed by channeling heat from computing operations through a heat pipe system inside the satellite, dissipating it into deep space, where temperatures approach absolute zero. This would not only eliminate the need for water-intensive cooling but also help preserve Earth’s aquatic ecosystems.

There are, of course, significant hurdles. Launching massive, heavy computer servers and extensive solar arrays into orbit is no small feat. The cost of such an endeavor could be prohibitively high.

The key to overcoming this challenge lies in a modular assembly approach similar to that used for constructing the International Space Station. Data center satellites can be manufactured as modules weighing several hundred kilograms each, launched into transitional orbits via rockets, and then transported to operational orbits by space tugs for in-orbit assembly. Spare modules stored in orbital warehouses could facilitate rapid replacement and maintenance. Emerging space tug startups are expected to play a critical role in this process.

For launch operations, cost-effective heavy-lift rockets such as SpaceX’s Falcon 9 could be utilized. If the currently testing Starship rocket proves successful, even lower launch costs would make the space data center concept more economically viable.

Crew 10, from left, cosmonaut Kirill Peskov, astronaut Nichole Ayers, astronaut Anne McClain and JAXA astronaut Takuya Onishi leave the Operations and Checkout building before heading to Launch Pad 39-A at the Kennedy Space Center in Cape Canaveral, Fla., for a mission to the International Space Station, on March 12. [AP/YONHAP]

Strategic development of space-based data centers

Reducing satellite production costs is another key consideration. Today, manufacturing a typical low-Earth orbit (LEO) exploration satellite costs between $200 million and $300 million. However, as seen with Starlink satellites, these costs must be dramatically reduced.

According to a report by Quilty Space, the first-generation Starlink satellites (weighing 260 kg) were produced for about $200,000 per unit. The version 2 mini-satellites, equipped with inter-satellite laser communication, weigh 800 kg and cost around $800,000 each. Even the significantly larger version 2 satellites, weighing between 1.5 and 2.0 tons, are estimated to cost just $1.2 million per unit.

Applying a similar cost-effective design philosophy — such as redundancy in critical components — to data center satellite modules would allow them to function reliably in harsh space environments, including exposure to cosmic radiation. If a space-based cloud computing network can be integrated with terrestrial data centers at a competitive cost, it will enable unlimited computing power driven by solar energy, ensuring profitability and fostering the growth of a massive new industrial sector.

Space-based data centers are no longer the stuff of science fiction. The European Space Agency (ESA) has recently conducted feasibility studies on entering the space data center sector, while Amazon has also expressed interest in the field. Reports indicate that the startup Lumen Orbit is preparing to launch a space-based data satellite into orbit.

The key to advancing the space economy lies in integrating existing large markets with cutting-edge space technology. Korea must act swiftly to stake its claim in this rapidly emerging industry.

Translated using generative AI and edited by Korea JoongAng Daily staff.