“Space-based AI” is the optimal solution to “NIMBYism” in data centers, and SpaceX is the best hedging tool (Morgan Stanley)
The report points out that AI NIMBYism ("not in my backyard") has become a major obstacle to the construction of ground data centers, causing about US$286 billion in related projects to be delayed or canceled.
The report points out that AI NIMBYism ("not in my backyard") has become a major obstacle to the construction of ground data centers, causing about US$286 billion in related projects to be delayed or canceled. Space has the inherent advantages of free energy, ample space and natural cooling. Currently, many technology companies around the world and China are accelerating the deployment of space-based AI infrastructure. Market discussions on AI mostly focus on terrestrial computing power, and as a solution to physical constraints on the ground, the strategic value and potential market size of "going to space" may be seriously underestimated. One sentence conclusion: When the demand for AI hits the "NIMBY" iron wall of the physical world, space may not be science fiction, but the only way out. SpaceX is transforming from a space exploration company into a "space computing infrastructure service provider" in the AI era. Positive/negative: Positive for SpaceX (SPCX.US) and related satellite and space technology companies. The market’s discussion of AI infrastructure focuses on the ground, and the value of the disruptive concept of “space-based AI” has hardly been priced. Catalysts: 1) The U.S. government officially approved the regulatory framework for space-based AI data centers; 2) SpaceX’s Starship carrying capacity reached the milestone of deploying GW-level computing power; 3) More large technology companies announced cooperation with SpaceX for space AI experiments.