The Political Battle for AI in Space
Will regulatory hurdles give China the edge in orbital data centers?
Elon Musk last week announced an ambitious goal of launching a million solar-powered AI data centers into orbit. It could be an innovative work-around to America’s permitting headaches and electric-power shortages that are slowing the AI buildout. But get this—some progressives want to make it harder to build in space.
“Space-based AI is obviously the only way to scale,” Mr. Musk wrote after announcing SpaceX’s merger with xAI. “It’s always sunny in space!” Mr. Musk’s mission to launch solar-powered AI data centers in space involves significant technical challenges, but it’s not a journey to Mars. Other companies including Google have the same ambitions. So do the Chinese.
Mr. Musk explained on a podcast Thursday that his plan would avoid the headaches involved in building data centers and electric plants to power them on earth. “It’s actually very difficult to build power plants. You don’t just need power plants, you need all of the electrical equipment. You need the electrical transformers to run the AI transformers,” he said.
There’s a shortage of all of the above on earth. Operating data centers in space would avoid an environmental thicket and require less water and energy for cooling. “It’s actually much cheaper to do in space,” he said. “My prediction is that it will be by far the cheapest place to put AI. It will be space in 36 months or less. Maybe 30 months.”
Mr. Musk has a history of making overly optimistic projections. Still, it’s notable that SpaceX has applied to the Federal Communications Commission for permission to deploy its new non-geostationary orbit satellite system. FCC Chair Brendan Carr immediately opened the application to public comment with the aim of getting the project off the ground soon.
Mr. Carr has been on a mission to fast-track approvals for satellites. The number of applications has increased three-fold over the past decade as more companies have sought to commercialize space, especially for telecommunications. Yet applications during the Biden Presidency could linger in the FCC queue for years.
The FCC bottleneck has slowed the deployment of internet satellites that could improve connectivity for rural areas and advance U.S. strategic interests abroad. Iranian protesters used Starlink to communicate when the government shut down the internet. The Ukrainian military has relied on some 50,000 Starlink terminals against Russia.
Texas Sen. Ted Cruz has teamed up with Vermont Democrat Peter Welch on a bill to expedite satellite approvals. Their bill would give the FCC a year and a half to approve or reject applications, after which they would be automatically approved. One goal is to future-proof Mr. Carr’s deregulation so a future Administration can’t revive old regulatory obstacles.
The obstructionists are striking back. At a Senate hearing last week, Washington Democrat Maria Cantwell objected because the bill would help Mr. Musk’s AI space ambition. That’s a bad reason to oppose it, since it would benefit all satellite companies. Democrats should love Mr. Musk’s plan because it would reduce data center CO2 emissions.
Ms. Cantwell also said the FCC should be able to take its merry time when reviewing satellite applications to ensure they won’t interfere with existing spectrum holders. A year and a half is plenty of time. Mr. Carr managed to cut the FCC application backlog in half during his first six months as Chair.
The real danger is political interference that hamstrings America’s space development and gives China an upper hand. Democrats and astronomical groups are also opposing Mr. Carr’s proposal to exempt satellites from environmental reviews. They say satellites could indirectly affect U.S. earthlings by, say, brightening the night-time sky.
But such effects are hypothetical. The Federal Aviation Administration separately evaluates the environmental impact of rocket launches in the U.S., which has in the past delayed satellite launches. Permitting difficulties are America’s economic Achilles’ heel. Let’s hope they don’t get in the way of U.S. space innovation.
Appeared in the February 10, 2026, print edition as 'The Political Battle for AI in Space'.