China is backing the startup Orbital Chenguang with $8.4 billion in credit lines to develop space-based data centers. The project aims to reach gigawatt-scale capacity by 2035, utilizing continuous solar energy and the natural cooling of space to bypass the power and cooling limitations of Earth-based grids. This move comes as AI workloads drive global data center electricity demand toward 1,000 TWh. By shifting computing loads into orbit, China seeks to decouple AI growth from terrestrial energy constraints and compete with Western efforts to build orbital infrastructure.
