SoftBank Rejects Space-Based Data Centres, Focuses on Earth for AI Growth

By: Harsh Vardhan

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Updated on: 24-Jun-2026 04:00 PM

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The rapid adoption of AI tools has sharply increased the demand for data centres worldwide. These facilities are essential for providing the computing power needed to run advanced AI models. However, operating data centres is costly, especially due to high electricity consumption.

Key Highlights

• SoftBank's Masayoshi Son rejects Elon Musk's plan for space-based AI data centres.
• Son says electricity is only 7 percent of AI data centre operating costs.
• SoftBank commits $65 billion to OpenAI and global data centre expansion.
• Musk and Bezos pursue orbital data centres, citing long-term energy benefits.
• Industry leaders debate feasibility and timing of space-based AI infrastructure.

Elon Musk, the founder of SpaceX and xAI, has proposed building data centres in space to address these challenges. In contrast, SoftBank founder Masayoshi Son has dismissed this idea, emphasizing the importance of expanding data centre capacity on Earth.

SoftBank’s Position on Space Data Centres

At SoftBank Corp’s annual shareholder meeting, Masayoshi Son was asked if the company planned to develop orbital data centres like those Musk envisions. Son responded by questioning the benefits of such a move, stating, “What’s the point? What’s the benefit of building AI data centre in space?”

Son argued that the immediate future is crucial in the AI race. He said, “In the battle for AI, the next few years will be far more important than what might happen a decade or so from now.” He also noted, “He who strikes first wins.”

While Son acknowledged Musk as a significant innovator, he insisted that SoftBank’s focus remains on building strong data centre capacity on Earth. He explained that the main advantage of space-based data centres would be lower electricity costs. However, he pointed out that electricity accounts for only about 7 percent of operating costs, according to SoftBank’s estimates. The majority of expenses come from hardware such as chips and other infrastructure.

Son further argued that any savings on electricity would likely be offset by the high costs of transporting equipment into space, as well as ongoing maintenance, networking, and latency issues.

Industry Context and Competing Visions

Data centres on Earth have faced criticism for their significant energy and water consumption, leading to public backlash in some regions. Despite these concerns, SoftBank has committed about $65 billion to OpenAI and pledged hundreds of billions of US dollars for global data centre infrastructure.

Son noted that competition in AI is intensifying, but he believes there is enough space for OpenAI and other major players such as Anthropic and Google. He described AI as being in its early stages, with potential for “ten-fold, a hundred-fold” growth.

Meanwhile, Musk’s vision involves launching a constellation of up to a million satellites to serve as orbital data centres powered by solar energy. He sees this as a step toward achieving a Kardashev II-level civilisation, which refers to a society capable of harnessing the full energy output of its star. Jeff Bezos’ Blue Origin has also announced plans for orbital data centres, and Bezos has called the concept “very realistic.”

However, not all industry leaders agree. OpenAI CEO Sam Altman has previously described the idea of orbital data centres as “ridiculous.”