Europe wants to send data centers into space — study says it’s possible
A data center.
Erik Isakson | DigitalVision | Getty Images
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 of space-based data centers to aid Europe in becoming carbon-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.”
Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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