Podcast: AI Data Centers in Space

If you are following the debate about whether data centers belong in orbit, this Freakonomics Radio podcast titled “Should A.I. Move to Space?” may be for you.

Guest host Steve Levitt talks to a number of experts about the role of AI in our economy. I recommend listing to all of the podcast since much of it touches on the logistics of data centers in orbit, but it is the later part of the podcast involving a discussion with Will Marshall, co-founder and C.E.O. of Planet Labs, that peaked my attention. He discusses both the role of Planet Labs as its satellites monitors every corner of the Earth’s surface as well as the need for AI data centers in space.

In terms of the Planet Lab satellites, I found his most intriguing statements were related to the reduced costs of satellites. While most of the stories in the press seem to be about the decrease in rocket costs, Mr. Marshall said the real transformation is the miniaturization of satellites. Even under the earlier rocket system (pre-SpaceX), the drop in satellite costs due to smaller satellites would have been incredible.

In the quote below, Mr. Marshall is referring initially to the lower rocket costs, but then he expands into the real cost saving:

But remember even a four or five x reduction in cost, which really helps the whole space industry and has helped spawn it, is less significant, purely from an economic standpoint, than the 100 to a 1,000x improvement in cost performance of satellites that are going in. So, in each kilogram that you put up into space, if you can get a hundred times more data, because you’ve made the satellite way smaller, then you have won big time, even if the launch cost didn’t change one iota.

In his discussion about AI data centers, Mr. Marshall also has a unique view about the role of the Earth’s surface versus space:

I think it’s inevitable that, within a 10-ish year timeframe, most computers being built on the Earth will be going to space. I actually think not only is it going to be economically cheaper, but it’s going to be more sustainable. Earth’s life is so precious, it’s incredible, but yet we’re whittling away a lot of it. We’re doing deforestation for lithium, for cows, for whatever, we’re doing it. And we need to put our energy-intensive infrastructure into orbit, if we can, to not have a collision course with the biodiversity on the planet,

The podcast episode is in two parts, so be sure to listen to the second part when it comes out.

Space Quote: Two Spacecraft Are Now Imperiled

Image (Credit): Artist’s rendering of the LINK spacecraft in the Pegasus XL Rocket after launch. (Northrop Grumman)

“Over the weekend, Katalyst’s LINK servicing spacecraft experienced issues with attitude control, causing the spacecraft to spin and resulting in sporadic communications. Preliminary investigation shows that two of LINK’s three reaction wheels currently are not operable, and there is some loss of functionality in its cold gas thruster system. LINK is designed to approach, capture, and boost NASA’s Neil Gehrels Swift Observatory to a higher orbital altitude.”

-Statement by NASA regarding the private sector LINK mission to save the Neil Gehrels Swift Observatory, which is slowly losing altitude and is expected to burn up in the atmosphere by year’s end if nothing is done. The LINK mission was launched from the Marshall Islands on July 3rd aboard a Pegasus rocket.

Starship’s 13th Test a Needed Success

Credit: SpaceX

After some delays, SpaceX’s Starship rocket is back in testing mode, with yesterday’s 13th launch a success. The rocket met the milestones set for the mission, and even launched a batch of satellites. This should give SpaceX and NASA some breathing room, as well as the new investors in SpaceX.

Mr. Musk had a bad week with both Tesla and SpaceX stock struggling. While SpaceX stock fell approximately 7 percent during the five days preceding the launch, the market should be somewhat more confident on Monday morning following the successful test.

Reuters reported last week that short sellers betting against SpaceX are making a fortune to the tune of about $8.7 billion. Mr. Musk may not like this, but if you want to be part of the marketplace then you need to understand how the market works.

In stocks, what goes up can often come down, and it can be painful to watch. As a rocket man, Mr. Musk should be familiar with this.

Maybe his success with Starship on Friday will turn some of that around.

Space Stories: Marooned Moon Astronauts, NASA’s Cancelled Contract, and New Horizon Ends Hibernation

Image (Credit): Commander Gene Cernan during the Apollo 17 lunar landing mission in December 1972. (NASA)

Here are some recent space-related stories of interest.

Forbes: Astronauts Marooned On Moon Could Be Abandoned Under Current NASA Plan

NASA’s working masterplan for the upcoming lunar landings has a fundamental flaw that could prove fatal to the first American astronauts set to touch down on the Moon in 2028, say experts at the NASA Office of Inspector General, an independent watchdog empowered by Congress to oversee the space agency. During the race to explore the south pole of the Moon, these inspectors say, “While NASA is taking steps to prevent catastrophic events from occurring during the Artemis [Moon] missions, at some point in the future, astronauts will likely encounter a life-threatening emergency in space.” But under NASA’s landing blueprints, they warn, “should the astronauts encounter a life-threatening emergency in space or on the lunar surface, NASA does not have the capability to rescue the stranded crew.”

Fox35 Orlando: “NASA Cancels $73 Million Moon Lander Mission with Contractor Draper‘”

NASA has canceled a $73 million commercial lunar lander mission after years of delays and cost overruns, ending the project before the spacecraft ever launched. The agency and contractor Draper mutually agreed to terminate the Commercial Lunar Payload Services Task Order CP-12, a mission that began in 2022 and was intended to deliver scientific payloads to a crater near the moon’s south pole…NASA has already paid about $43 million under the contract and said those funds cannot be recovered because they were legally obligated under the agreement.

CNN: Pluto Flyby Mission Wakes Up After Long Sleep Nearly 6 billion Miles from Earth

A groundbreaking mission that explored Pluto and distant solar system objects in unprecedented detail has awakened from its longest sleep ever — and it’s 5.9 billion miles (9.5 billion kilometers) from Earth. NASA’s New Horizons spacecraft went into a planned hibernation mode on August 7, 2025, and woke up on June 23 using commands stored on its main computer. The mission’s flight controllers at the Johns Hopkins University’s Applied Physics Laboratory in Laurel, Maryland, confirmed that New Horizons is in great shape and ready to transmit a stream of science data gathered during hibernation from its location in the region of icy objects known as the Kuiper Belt.

Note: Here is the podcast version of this post.

Space Quote: The Taikonauts Are Coming!

Image (Credit): The crew of the latest mission to China’s Tiangong space station – the Shenzhou 23 mission. (CMSA/CCTV)

“Well, I would just say, first, it’s not arguably like there- we are very much in a space race right now, and the Chinese are moving at incredible speeds, and they are certainly capable of doing what the Soviets were not during the- the first space race. The Chinese will land their taikonauts on the moon. There’s no question. The question is, will the United States return before them, and will we do so in a different way this time, when we build a base, establish that enduring presence? I think the answer is yes.

-Statement by NASA Administrator Jared Isaacman on CBS’s Face the Nation this past Sunday. The interview addresses other issues in addition to the Artemis mission to the Moon, including efforts to save the Swift space telescope as well as the status of Blue Origin’s efforts to recover from the recent explosion of its New Glenn rocket.