The rise of artificial intelligence is skyrocketing demand for data centers to keep pace with the growing tech sector — and pushing Europe to explore space options for digital storage, in a bid to reduce its need for energy-hungry facilities on the ground.
Advanced Space Cloud for European Net zero emission and Data sovereignty, a 16-month long study that explored the feasibility of launching data centers into orbit, has come to a “very encouraging” conclusion, according to Damien Dumestier, manager of the project.
The 2 million-euro ($2.1 million) ASCEND study, coordinated by Thales Alenia Space on behalf of the European Commission, claims that space-based data centers are technically, economically and environmentally feasible.
“The idea [is] to take off part of the energy demand for data centers and to send them in space in order to benefit from infinite energy, which is solar energy,” Dumestier told CNBC.
‘Data tsunami’
Data centers are essential for keeping pace with digitalization, but also require significant amounts of electricity and water to power and cool their servers. The total global electricity consumption from data centers could reach more than 1,000 terrawatt-hours in 2026 —that’s roughly equivalent to the electricity consumption of Japan, according to the International Energy Agency.
The industry is about to be hit with a “wave of data tsunami,” said Merima Dzanic, head of strategy and operations at the Danish Data Center Industry Association.
“AI data centers need something like three times more energy than a traditional data center and that is a problem not just on the energy side, but also the consumption side,” she told CNBC.
A “whole different approach to how we build, design and operate data centers,” is required, Dzanic added.
The facilities that the study explored launching into space would orbit at an altitude of around 1,400 kilometers (869.9 miles) — around three times the altitude of the International Space Station. Dumestier explained that ASCEND would aim to deploy 13 space data centre building blocks with a total capacity of 10 megawatts in 2036, in order to achieve the starting point for cloud service commercialization.
Each building block — with a surface area of 6,300 square meters — includes capacity for its own data center service and is launched within one space vehicle, he said.
In order to have a significant impact on the digital sector’s energy consumption, the objective is to deploy 1,300 building blocks by 2050 to achieve 1 gigawatt, according to Dumestier.
Eco launch
ASCEND’s goal was to explore the potential and comparative environmental impact ofspace-based data centers to aid Europe inbecomingcarbon-neutral by 2050.
The study found that, in order to significantly reduce CO2 emissions, a new type of launcher that is 10 times less emissive would need to be developed. ArianeGroup, one of the 12 companies participating in the study, is working to speed up the development of such reusable and eco-friendly launchers.
The target is to have the first eco-launcher ready by 2035 and then to allow for 15 years of deployment in order to have the huge capacity required to make the project feasible, said Dumestier.
Yet Dzanic warned the somewhat “fringe” idea of space-based data centers doesn’t fully solve the issue of sustainable energy usage. “It’s just one part of the puzzle,” she said.
Michael Winterson, managing director of the European Data Centre Association, acknowledges that a space data center would benefit from increased efficiency from solar power without the interruption of weather patterns — but the center would require significant amounts of rocket fuel to keep it in orbit.
Data centers are projected to account for more than 3% of Europe’s electricity demand by 2030.
Andrey Semenov | Istock | Getty Images
Winterson estimates that even a small 1 megawatt center in low earth orbit would need around 280,000 kilograms of rocket fuel per year at a cost of around $140 million in 2030 — a calculation based on a significant decrease in launch costs, which has yet to take place.
“There will be specialist services that will be suited to this idea, but it will in no way be a market replacement,” said Winterson.
“Applications that might be well served would be very specific, such as military/surveillance, broadcasting, telecommunications and financial trading services. All other services would not competitively run from space,” he added in emailed comments.
Dzanic also signaled some skepticism around security risks, noting, “Space is being increasingly politicised and weaponized amongst the different countries. So obviously, there is a security implications on what type of data you send out there.”
World leader
ASCEND isn’t the only study looking into the potential for orbital data centers. Microsoft, which has previously trialed the use of a subsea data center that was positioned 117 feet deep on the seafloor, is collaborating with companies such as Loft Orbital to explore the challenges in executing AI and computing in space. Its work is crucial for innovation and to “lay the groundwork for future data management solutions in space,” a Microsoft spokesperson told CNBC.
ASCEND is one way through which the EU seeks to gain a competitive advantage within the AI ecosystem, where the bloc is currently lagging behind the U.S. and China, Dzanic said.
The EU is only now “starting to wake up and smell the coffee and go in with funding these projects,” she added.
The ASCEND researchers are in talks with the International Space Agency for the next phase which includes consolidating all of the data they have gathered and work on the development of a heavy lift launcher.
“We want to ensure data sovereignty for Europe, but this kind of project can benefit other countries,” said Dumestier. “We are pushing a lot because we can tell that it is a promising project. It could be a flagship for the Europe space development.”
Honda’s patent filings offer a clear glimpse into the company’s plans for an ultra-affordable electric motorcycle, integrating a proven chassis with a simple electric powertrain. It’s a clear glimpse into how the world’s most prolific motorcycle maker plans to challenge the nascent electric motorcycle market.
The filings in Honda’s new patent show a bike built around the familiar platform of the Honda Shine 100, a best-selling commuter in India, reimagined in electric form for a cost-effective future of urban mobility.
According to Cycle World’s Ben Purvis, Honda’s patent sketches outline a design that repurposes the Shine’s sturdy frame and chassis mounting points to house an electric motor and compact battery setup. Positioned where the engine once sat, a mid-motor drives the rear wheel via a single-speed reduction gear and chain – mirroring the essentials of the original gasoline-powered commuter bike.
Instead of a traditional fuel tank, the design features two lithium-ion battery packs, angled forward on either side of the spine frame and fitting neatly into the existing geometry.
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What makes the bike revealed in this patent even more interesting isn’t just its clever packaging, but rather the platform. By leveraging the proven Shine chassis, Honda can significantly cut development costs, manufacturing complexity, and market price. That’s a big statement given that surviving in price-sensitive markets like India demands simplicity and reliability. And by piggybacking off a proven platform, Honda can dramatically reduce the time to market from the time the boardroom bigwigs give the project the final green light.
Honda’s patent images show an electric motorcycle built on the same platform as the Honda Shine 100
The design still seems to feature styling that would be fairly consistent with the Shine 100, even down to a gas cap-like circular protrusion likely on top of a faux-tank. Some electric motorcycles in the past have used this location to hide a charging port, keeping similar form and function to outdated fuel tanks and fill ports, though it’s not clear if that is Honda’s intention.
It’s not clear what power level Honda could be targeting, but the Shine bike from which Honda’s creation draws its design inspiration could provide some clues. The Honda Shine 100 features a 99cc engine that provides around 7.3 horsepower (around 5.5 kW) and has a top speed of 85 km/h (53 mph), solidly planting it in the commuter segment of motorcycles.
The electric motorcycle in Honda’s design would be unlikely to target much higher performance as it would drastically increase the required battery capacity, and thus similar speeds of around 80-85 km/h (50-53 mph) would seem likely.
There also appears to be no active cooling, which would also limit the amount of power that Honda would be likely to draw continuously. The patent describes a channel formed by the two battery packs, leading to the speed controller and creating ducted cooling that pulls heat out of the batteries and electronics without drawing extra power.
Honda hasn’t released a final design, but I ask AI to create one based on the patent images. I’d ride that!
This emerging design is just one piece of Honda’s broader electric two-wheeler strategy. Their entry-level EM1 e: and Activa e: scooters launched with mobile battery packs and budget-friendly pricing. Meanwhile, high-tech concepts continually push the envelope. But this Shine-based bike aims squarely at the heart of mainstream affordability – a move likely to resonate with millions of new electric riders in developing regions like India where traditionally-styled small-dsiplacement motorcycles reign supreme.
Honda hasn’t revealed a timeline or pricing yet, but Honda’s patents offer real hope to fans of the brand’s electric efforts. If scaled effectively, this could be the first truly mass-market electric motorcycle from a major OEM, with a sticker price likely far below the $5,000 mark usually seen as a floor for commuter electric motorcycles from major manufacturers. That would also dramatically undercut models from brands like Zero or Harley-Davidson’s LiveWire, even as those brands rush to bring their own lower-cost models to market.
Electrek’s Take
Honda’s patent reveals a clever, no-frills EV designed to democratize electric two-wheeling, especially in developing markets that are even more price-sensitive than Western electric motorcycle customers.
Using a trusted frame, simple electric drive, and passive cooling, I’d say it definitely prioritizes cost over complexity, which is exactly what urban commuters need. If Honda can bring this to market, it would not just add another electric bike to the mix… it could create a new baseline for affordability in affordable electric mobility. Now we’re just waiting for the rubber to hit the road!
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And today, Musk made it official that he will seek greater collaboration between three of his companies: Tesla, xAI, and twitter, in the form of an investment into xAI by Tesla.
The situation is a little more complicated than that, though.
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Tesla is a public company, owned by shareholders. Musk is the largest shareholder, but only owns around 12% of the company himself.
This is a different situation than xAI, which is a private company, owned by Musk. While there are other investors, he can exercise much more direct control over the company, and doesn’t have to put big decisions up to a vote.
One of the recent decisions he made with xAI was to purchase twitter in March. You may say, “wait, I thought he bought twitter back in 2022?,” and you’d be correct. Musk purchased twitter for $44 billion in 2022, which was widely agreed to be far too high a price, and then rapidly saw the company’s valuation drop to under $10 billion.
Then, in March 2025, Musk had xAI purchase twitter in an all-stock deal, valuing twitter company at $45 billion – again, far too high of a valuation, but considering he purchased the company from himself, he could set the price at whatever he wanted.
The move was widely considered to be a bailout of twitter, and the numbers involved considered arbitrary, perhaps partially to help save face for Musk after he made one of the worst business deals of all time.
Now the two are the same entity, and it seems clear that he would like to bring Tesla into the fold, in some way or another.
Musk has already improperly used resources from Tesla, a public company, to boost xAI and twitter, his private companies. Last year, he gave up Tesla’s priority position for highly sought-after NVIDIA H100 GPUs, instead shipping those GPUs to xAI and twitter. Tesla could have used these GPUs for training its FSD/Robotaxi systems, which Musk has claimed is the most important thing to Tesla’s future, but instead graciously sent them to his other company that used them to, uh, train a bot to say Nazi stuff apparently.
xAI has also poached talent from Tesla, multiple times, showing how Musk is using Tesla as a farm team for his private company.
So it hasn’t been a secret that Musk would like to use public money to bail out his private companies, as he’s been setting the stage for for a while now.
Musk has previously “discussed” getting Tesla to invest in xAI in the past, but the idea was never made official until today, when Musk said that he will put the idea to a shareholder vote.
In response to one of his superfans asking for the the opportunity to waste money on an overvalued social media app (which would mark the third time it has been overpaid for in as many years), and the backend fueling “MechaHitler,” Musk said this:
Tesla traditionally holds its annual shareholder meeting around the middle of the year, so if it were a normal year, this shareholder vote might be imminent.
But it’s not a normal year, as just last week Tesla announced an exceptionally late shareholder meeting, pushing it back to November, the latest it has ever held the meeting.
This means that Musk will have around four months to campaign for this idea – something that he’ll perhaps have more time to do, now that he’s no longer cosplaying as a government official.
We don’t know what the structure of the deal might look like yet, but Musk has been clear in the past that he wants more shares in Tesla. After selling many of his shares in order to buy twitter, he later complained that he doesn’t feel comfortable having less than 25% of Tesla. Given that his recent xAI/twitter deal was an all-stock deal, Musk could attempt to fund any investment of Tesla into xAI via shares, giving himself more Tesla shares in exchange for the company gaining a portion of xAI. Though to get him to 25% voting shares in Tesla, that would require either an enormous valuation for xAI, a small valuation for Tesla, or purchasing a large percentage of xAI (or, perhaps, all three, given how much higher TSLA’s valuation is than xAI’s).
We may however have a hint as to how that vote will go, because the last time Musk campaigned for a clearly terrible idea, Tesla shareholders ate it up.
In mid-2024, Musk ended his yearslong absenteeism at Tesla in a flurry of activity, hoping to persuade enough shareholders to vote for his illegal $55B pay package.
So it looks like we’ve got another campaign coming up, and if last time was any indication, expect some really bad decisions along the way. It worked last time, didn’t it?
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The off-highway equipment experts at Perkins and McElroy have teamed up to develop a plug-and-play battery electric power unit designed to help equipment OEMs and upfitters to seamlessly transition from diesel to battery electric power.
Designed to occupy the same space as the companies’ diesel-engined power units, Perkins dropped its new battery power unit into the similarly new McElroy TracStar 900i pipe fusion machine (specialized equipment used to join thermoplastic pipes like HDPE or polypropylene by heat-welding them end-to-end to form a continuous length pf pipe).
Perkins’ battery electric power unit replaces the company’s proprietary 134 hp, 3.6 liter 904 Series Tier V diesel engine, enabling units that are already deployed to be quickly upgraded to electric power – and helping trade allies and development partners to easily retrofit existing equipment in order to add zero-emission options to their operational fleet.
“We’re actively helping customers navigate the shift in power system requirements, with a range of advanced power systems including electric, diesel-electric and alternative fuel compatible engines,” says Jaz Gill, vice president, global sales, marketing at Perkins. “When it comes to the innovative fully integrated battery electric power unit, it can be ‘dropped in’ to a machine to replace a diesel engine. The system consists of a Perkins battery along with inverters, motors and on-board chargers – all packaged up into a compact drop-in system to support seamless transition from diesel to electric for our customers looking to make that move.”
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McElroy believes that an electric, emissions-free power unit like this one will open new opportunities and applications for its customers.
“Their team has done a phenomenal job of integrating their battery electric system into our TracStar 900i,” explains McElroy President and CEO Chip McElroy. “We’re really excited to see what the market thinks about this concept.”
Development of the battery electric powered pipe fusion machine was completed in about nine months. Future Perkins-powered electric equipment running the 904 diesel (small excavators, telehandlers, pumps, and gensets) could be developed even more quickly. You can find out more in the company’s promo video, below.