Bezos says 2-3 year timeline for space data centers is a 'little ambitious'

Amazon founder Jeff Bezos says bringing data centers into space is a "very realistic" outcome, but could take longer than expected to pan out as enthusiasm for the sector builds ahead of SpaceX's upcoming IPO.

"Some of the timelines we hear are very short," he told CNBC's Andrew Ross Sorkin on Wednesday. "People would talk about two or three years. That's probably a little ambitious."

Bezos, who founded space company Blue Origin, said one key barrier to entry is energy, and chip costs need to come down to make more room in data center budgets. Launch costs also need to get cheaper, he said.

Space companies are racing to make data centers in orbit a reality, but artificial intelligence demand requires massive energy resources. Proponents say orbital data centers offer unfettered solar energy access and resolve the issue of finding land to build these sprawling sites.

Businesses are betting big on the prospect of space-based datacenters. In February, Musk said building "orbital data centers" in space was one of the main reasons for merging SpaceX with his artificial intelligence start-up xAI.

In March, Blue Origin submitted plans to the Federal Communications Commission to send 51,600 data center satellites into low Earth orbit, as part of an initiative dubbed "Project Sunrise."

The satellites would be supported by Blue Origin's planned constellation, called TeraWave. Blue Origin has sought regulatory approval to launch TeraWave, saying it hopes to begin deploying the constellation in the fourth quarter of 2027.

Bezos' comments come ahead of SpaceX's anticipated IPO filing this week.

Bezos said Blue Origin's strategy also involves moving industry to the moon. That includes building solar cells from lunar materials, which he said can be launched more easily into space because of the moon's gravity distribution.

Blue Origin is also working with NASA and the U.S. government to build a permanent base on the moon and scale U.S. defense capabilities to maintain space superiority.

"I would caution people who think it's all science fiction to be a little cautious with their judgment, because it is real, it is happening," Bezos said. "It's probably going to happen faster than most people think."

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