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Data in space

Eric Schmidt apparently bought Relativity Space to put data centers in orbit

“Gives you a sense of how big this crisis is.”

Eric Berger – | 242
Former CEO & Chairman of Google Eric Schmidt in 2024. Credit: Shahar Azran/Getty Images
Former CEO & Chairman of Google Eric Schmidt in 2024. Credit: Shahar Azran/Getty Images
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In the nearly two months since former Google chief executive Eric Schmidt acquired Relativity Space, the billionaire has not said much publicly about his plans for the launch company. However, his intentions for Relativity now appear to be increasingly clear: He wants to have the capability to launch a significant amount of computing infrastructure into space.

We know this because Schmidt appeared before the House Committee on Energy and Commerce during a hearing in April, speaking on the future of AI and US competitiveness. Among the topics raised then was the need for more electricity—both renewable and non-renewable—to power data centers that will facilitate the computing needs for AI development and applications. Schmidt noted that an average nuclear power plant in the United States generates 1 gigawatt of power.

“People are planning 10 gigawatt data centers,” Schmidt said. “Gives you a sense of how big this crisis is. Many people think that the energy demand for our industry will go from 3 percent to 9 percent of total generation. One of the estimates that I think is most likely is that data centers will require an additional 29 gigawatts of power by 2027, and 67 more gigawatts by 2030. These things are industrial at a scale that I have never seen in my life.”

AI applications consume an enormous amount of computing power. A single ChatGPT query consumes approximately 10 times more energy than a Google search does. The US energy industry is not well prepared for this kind of dramatic growth in energy demand, as power consumption over the last decade has increased by about 0.5 percent a year. Data centers also consume significant amounts of water for cooling.

Data centers in space

After seeing these comments by Schmidt, I reasoned that the former Google executive might have bought Relativity Space as a means to support the development of data centers in space. Such data centers, ideally, would be powered by solar panels and be able to radiate heat into the vacuum of space.

“This probably helps explain why Schmidt bought Relativity Space,” I commented on the social media site X after Schmidt’s remarks. A day later, Schmidt replied with a single word, “Yes.”

There are relatively few US launch companies that either have large rockets or are developing them. The options for a would-be space entrepreneur who wants to control their own access to space are limited. SpaceX and Blue Origin are already owned by billionaires who have total decision-making authority. United Launch Alliance’s Vulcan rocket is expensive, and its existing manifest is long already. Rocket Lab’s Neutron vehicle is coming soon, but it may not be large enough for Schmidt’s ambitions.

That leaves Relativity Space, which may be within a couple of years of flying the partially reusable Terran R rocket. If fully realized, Terran R would be a beastly launch vehicle capable of launching 33.5 metric tons to low-Earth orbit in expendable mode—more than a fully upgraded Vulcan Centaur—and 23.5 tons with a reusable first stage. If you were a billionaire seeking to put large data centers into space and wanted control of launch, Relativity is probably the only game in town.

As Ars has previously reported, there are some considerable flaws with Relativity’s approach to developing Terran R. However, these problems can be fixed with additional money, and Schmidt has brought that to the company over the last half-year.

Big problems, big ideas

Schmidt does not possess the wealth of an Elon Musk or Jeff Bezos. His personal fortune is roughly $20 billion, so approximately an order of magnitude less. This explains why, according to financial industry sources, Schmidt is presently seeking additional partners to bankroll a revitalized Relativity.

Solving launch is just one of the challenges this idea faces, of course. How big would these data centers be? Where would they go within an increasingly cluttered low-Earth orbit? Could space-based solar power meet their energy needs? Can all of this heat be radiated away efficiently in space? Economically, would any of this make sense?

These are not simple questions. But Schmidt is correct that the current trajectory of power and environmental demands created by AI data centers is unsustainable. It is good that someone is thinking big about solving big problems.

Photo of Eric Berger
Eric Berger Senior Space Editor
Eric Berger is the senior space editor at Ars Technica, covering everything from astronomy to private space to NASA policy, and author of two books: Liftoff, about the rise of SpaceX; and Reentry, on the development of the Falcon 9 rocket and Dragon. A certified meteorologist, Eric lives in Houston.
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