Comment by schiffern
12 hours ago
The dominant factor is "balance of system" aka soft costs, which are well over 50%.[0]
Orbit gets you the advantage of 1/5th the PV and no large daily smoothing battery, but also no on-site installation cost, no grid interconnect fees, no custom engineering drawings, no environmental permitting fees, no grid of concrete footers, no heavy steel frames to resist wind and snow loads. The "on-site installation" is just the panels unfolding, and during launch they're compact so the support structure can be relatively lightweight.
When you cost building the datacenter alone, it's cheaper on earth. When you cost building the solar + batteries + datacenter, it (can be) cheaper in space, if you build it right and have cheap orbital launch.
Funny, I would have included transportation as part of the installation cost. You didn't mention that one.
I do say it's predicated on cheap orbital launch. Clearly they expect Starship to deliver, and they're "skating to where the puck will be" on overall system cost per unit of compute.
But yeah, I didn't include that delivering all that stuff by truck (including all the personnel) to a terrestrial PV site isn't free either.
Yeah, soft costs like permitting and inspections are supposedly the main reason US residential solar costs $3/watt while Australian residential solar costs $1/watt. It was definitely the worst and least efficient part of our solar install, everything else was pretty straightforward. Also, running a pretty sizable array at our house, the seasonal variation is huge, and seasonal battery storage isn’t really a thing.
Besides making PV much more consistent, the main thing this seems to avoid is just the red tape around developing at huge scale, and basically being totally sovereign, which seems like it might be more important as tensions around this stuff ramp up. There’s clearly a backlash brewing against terrestrial data centers driving up utility bills, at least on the East Coast of the US.
The more I think about it, the more this seems like maybe not a terrible idea.
Do you imagine there'd be less red tape involved in launching multiple rockets per day carrying heavy payloads?
Like this argument just gets absurd: you're claiming building a data center on earth will be harder from a permitting perspective than FAA flight approval for multiple heavy lift rocket launch and landing cycles.
Mining companies routinely open and close enormous surface area mines all over the world and manage permitting for that just fine.
There's plenty of land no one will care if your build anything on, and being remote with maybe poor access roads is still going to be enormously cheaper then launching a state of the art heavy lift rocket which doesn't actually exist yet.
The fuel costs alone would dwarf a data center build out.
No maintenance either