The Cost and Network Limits of Space-Based AI Compute

This paper evaluates whether large-scale AI data centers deployed in low-Earth orbit (LEO) could become a cost-effective alternative to terrestrial facilities. The analysis compares orbital and ground-based systems across launch cost, power generation, cooling, radiation exposure, and atmospheric reentry, as well as compute-network performance. A key distinction is the shift from terrestrial Clos networks to space-based mesh networks using laser inter-satellite links. Using bisection bandwidth, bisection intensity, and roofline-style models, we show that while LEO-based inference may be feasible, training frontier-scale LLMs in orbit is unlikely to be competitive with terrestrial data centers.