Amid growing concerns about the environmental impact and resource demands of artificial intelligence (AI) data centers, researchers and companies are increasingly exploring the use of solar power generated in space to support energy-intensive computing operations. On Thursday, the California Institute of Technology (Caltech) and Sophia Space, a startup focused on orbital computing, announced they had been granted a patent for a cooling system designed to enable data centers to operate in orbit, powered by continuous solar energy.

The patented technology addresses a critical challenge for space-based data centers: managing the heat generated by computer chips in an environment lacking air or water for cooling. Sophia Space’s system uses a combination of specially designed tiles and solar power to dissipate waste heat directly into deep space, enabling efficient cooling without reliance on terrestrial resources. The company described its solution as “cost competitive” with traditional land-based data centers.

This development is part of a broader push to harness solar energy beyond Earth. While spacecraft and satellites currently rely on solar panels, the scale envisioned by Caltech and Sophia Space is unprecedented, aiming to launch operational data centers into orbit by the early 2030s. These orbital solar arrays would provide uninterrupted, 24-hour power, unlike terrestrial solar systems constrained by the day-night cycle and weather conditions. Such continuous availability could make space solar power a reliable alternative to fossil fuel plants and help meet surging electricity demands driven by the growth of electric vehicles, heating and cooling systems, and AI infrastructure.

The proposal to move data centers into orbit also responds to local opposition against terrestrial centers, which have been criticized for consuming large amounts of electricity and water and contributing to rising energy costs in nearby communities. However, some experts remain skeptical about space-based data centers. Bill Powers, an engineer testifying on behalf of consumers before utility regulators, warned that these ventures might add to space debris, increase consumer power costs, and potentially undermine grid reliability, describing them as “a distraction.”

Despite such concerns, interest in space solar power is intensifying. Elon Musk recently proposed launching around a million satellites to serve as data centers, and major technology companies like Google and Blue Origin have pursued related projects. The U.S. Energy Department has investigated space solar power for more than a decade, and collaborations between academic institutions and private firms are ongoing. For example, Caltech and Sophia Space are working alongside other groups such as Georgia Institute of Technology and Hanwha Qcells, a South Korean solar manufacturer, to advance the technology.

Unlike concepts that transmit solar-generated electricity from orbit to Earth via radio waves or lasers—a method pursued by companies like Solaren, which plans to commercialize such systems within the next decade—the Caltech and Sophia Space approach focuses on using solar energy directly to power orbiting data centers that send data back to Earth. According to Leon Alkali, co-founder and chief technology officer of Sophia Space, this avoids the technical and financial complexities of energy transmission to the ground.

As the digital economy expands and energy demands grow, space-based solar power presents an innovative but still emerging option. Whether these orbital data centers become practical and economically viable remains to be seen, but their development reflects an ongoing search for sustainable solutions to the resource challenges posed by AI and other modern technologies.