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AWS CEO cites high launch costs and capacity constraints as barriers to space-based data centers
Thursday, February 5, 2026 at 04:37 PM
Amazon Web Services CEO dismissed the immediate viability of space-based data centers, citing the lack of launch capacity and the prohibitive cost of sending payloads into orbit as primary barriers to economic feasibility.
Context
AWS CEO Matt Garman dismissed the near-term viability of space-based data centers at the Cisco AI Summit on February 4, 2026, citing "massive" launch costs and capacity shortages. His comments directly challenge Elon Musk’s recent filing for a 1 million-satellite orbital AI network following the $1.25 trillion merger of SpaceX and xAI. Garman emphasized that the extreme weight of server hardware and a lack of permanent orbital structures make space-based compute uneconomical compared to Amazon's 900+ terrestrial facilities.
The economic hurdle remains significant for the semiconductor and AI supply chains. While SpaceX has reduced launch costs to roughly $1,500 per kg, analysts estimate that orbital compute would require costs to plummet to $20–$30 per kg to rival Earth-based refresh cycles. Amazon itself is facing logistical constraints, recently requesting an FCC extension to delay its 3,232-satellite Amazon Leo deployment to July 2028 due to a global shortage of heavy-lift rockets. This indicates that AI infrastructure will remain firmly terrestrial through the end of the decade.
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