Reliable energy? Possible, but difficult -- need plenty of batteries
Cooling? Very difficult. Where does the heat transfer to?
Latency? Highly variable.
Equipment upgrades and maintenance? Impossible.
Radiation shielding? Not free.
Decommissioning? Potentially dangerous!
Orbital maintenance? Gotta install engines on your datacenter and keep them fueled.
There's no upside, it's only downsides as far as I can tell.
The whitepaper also says that they're targeting use cases that don't require low latency or high availability. In short: AI model training and other big offline tasks.
For maintenance, they plan to have a modular architecture that allows upgrading and/or replacing failed/obsolete servers. If launch costs are low enough to allow for launching a datacenter into space, they'll be low enough to allow for launching replacement modules.
All satellites launched from the US are required to have a decommissioning plan and a debris assessment report. In other words: the government must be satisfied that they won't create orbital debris or create a hazard on the ground. Since these satellites would be very large, they'll almost certainly need thrusters that allow them to avoid potential collisions and deorbit in a controlled manner.
Whether or not their business is viable depends on the future cost of launches and the future cost of batteries. If batteries get really cheap, it will be economically feasible to have an off-the-grid datacenter on the ground. There's not much point in launching a datacenter into space if you can power it on the ground 24/7 with solar + batteries. If cost to orbit per kg plummets and the price of batteries remains high, they'll have a chance. If not, they're sunk.
I think they'll most likely fail, but their business could be very lucrative if they succeed. I wouldn't invest, but I can see why some people would.
This is hiding so, so much complexity behind a simple hand wavy “modular”. I have trained large models on thousands of GPUs, hardware failure happen all the time. Last example in date: an infiniband interface flapping which ultimately had to be physically replaced. What do you do if your DC is in space? Do you just jettison the entire multi million $ DGX pod that contains the faulty 300$ interface before sending a new one? Do you have an army of astronauts + Dragons to do this manually? Do we hope we have achieve super intelligence by then and have robots that can do this for us ?
Waving the “Modular” magic key word doesn’t really cut it for me.
Something tells me that the price of batteries is already cheap enough for terrestrial data centers to make more economic sense than launching a datacenter - which will also need batteries - into space.
Assuming the $165M of panels and batteries last for a decade, and there are no maintenance costs, they'll provide 3,504,000MWh over that time for an energy cost of 4.7 cents per kWh. This is competitive with grid power in some places. It also has the advantage of not needing backup generators. But maintenance costs do exist, and it makes more financial sense to buy power as you use it rather than pay upfront.