Eric Schmidt plans to launch data centers into space to address AI energy crisis
- Eric Schmidt has acquired Relativity Space to address increasing energy demands for AI applications.
- Data centers in space could provide sustainable power solutions using solar energy.
- The initiative reflects the urgent need for innovative energy solutions to meet rising computational demands.
In May 2025, former Google CEO Eric Schmidt publicly revealed plans following his acquisition of Relativity Space, signaling a significant shift in the space and technology landscape. The acquisition appears driven by the increasing energy demands of artificial intelligence applications, which have risen sharply in recent years. Experts estimate that by 2027, data centers will require an additional 29 gigawatts of power, and as much as 67 gigawatts by 2030. This surge in power needs for computing resources has led to concerns regarding the sustainability of energy supply. One of the more innovative solutions proposed is to create data centers in space, which could be power-efficient by utilizing solar panels and dissipating heat into the vacuum of space. Schmidt's interest in launching these data centers aligns with the pressing need for more energy capacity, especially given that AI technologies, such as ChatGPT, consume significantly more energy than traditional digital systems, such as Google searches. As the US energy infrastructure struggles to keep pace with a demand growth rate of only 0.5 percent per year over the last decade, the urgency for new energy solutions becomes apparent. By acquiring Relativity Space, Schmidt seems to be making a strategic move to control the launch capabilities necessary for deploying these orbital data centers. Within the competitive landscape of aerospace, where companies like SpaceX and Blue Origin already have established positions, Relativity reflects a promising opportunity. It offers the potential for an advanced launch vehicle, the Terran R, capable of sending up to 33.5 metric tons to low-Earth orbit, positioning it favorably for Schmidt's intended projects. While there are acknowledged flaws in Relativity’s development strategy, additional funding could resolve many of these issues. Schmidt's vision is ambitious, seeking to integrate space and technology in a way that not only addresses immediate challenges but also lays the groundwork for future energy needs in AI. As industries and economies evolve, and demand for computational resources continues to rise, his plan to create orbital data centers could represent a pivotal moment in addressing an unsustainable trajectory of energy consumption and environmental impact.