Could space solar solve the data center power dilemma?
Renewed interest in space-based solar power is emerging as a potential solution to the growing electricity demands of AI and data centers. Overview Energy, a startup in Ashburn, Virginia, is developing a system using satellites to capture and beam uninterrupted sunlight to ground-based solar panels. Meta has already signed a contract with Overview Energy for the first gigawatt of capacity from this space-solar initiative.
The increasing electricity demands from artificial intelligence and data centers are reigniting interest in space-based solar power, a concept initially explored by NASA decades ago but previously deemed too costly and impractical.
In Ashburn, Virginia, the four-year-old startup Overview Energy is actively developing a system designed to use thousands of satellites in orbit to capture continuous sunlight. This energy would then be beamed to ground-based solar panels using near-infrared light, aiming to overcome the intermittency of traditional solar power. The company projects beaming its first batch of power from space by January 2028 and has secured a contract with Meta to provide the first gigawatt of capacity for the tech giant's data centers.
This technology is gaining traction as tech companies face challenges in securing sufficient electricity for their expanding data center operations and encounter community opposition to new terrestrial power infrastructure. Alongside Overview Energy, solar manufacturers, universities, and the U.S. Department of Energy are investing in space-solar research, with China's advancements adding a strategic competitive dimension to the U.S. efforts.
Despite the growing interest, significant hurdles remain, including the high cost and complexity of satellite construction and launch, as well as potential safety concerns regarding communications and aircraft navigation. Critics argue that advancements in battery storage and conventional solar technology could offer cheaper solutions to reliability issues, while proponents believe ongoing improvements in space and launch technology will eventually make space-based solar a competitive source of continuous electricity.