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US-China AI Race Reaches Orbit: The Rise of Space-Based Data Centers in 2026

2 min readSource

The US-China AI rivalry extends to space. Starcloud plans a 5-gigawatt orbital data center as tech giants race to harness solar power for AI infrastructure in 2026.

The battle for AI supremacy has officially left the atmosphere. As terrestrial power grids strain under the weight of massive LLMs, Google and SpaceX are reportedly racing to deploy solar-powered computing networks in orbit. According to Nikkei Asia, this isn't just about speed—it's about survival in an energy-hungry era.

Starcloud’s 5-Gigawatt Vision for Orbital AI Computing

US-based startup Starcloud has unveiled a blueprint for a massive 5-gigawatt space data center. The project involves a constellation of tens of thousands of satellites designed to capture 24/7 solar energy. Meanwhile, Chinese researchers are quickly catching up, aiming to establish their own orbital computing nodes to bypass US-led trade restrictions on ground-based hardware.

Solar Power and the Geopolitics of the Final Frontier

By moving processing power to space, companies can avoid the thermal and electrical limitations of Earth. However, this creates a new geopolitical friction point. Analysts suggest that by January 2026, the ability to manage space-based data will be as critical as owning a domestic power grid. The race represents a shift from territorial data sovereignty to orbital dominance.

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US-China AI Race Reaches Orbit: The Rise of Space-Based Data Centers in 2026 | PRISM by Liabooks