SpaceX's Orbital Data Centers: Are They Really Environmentally Friendly?

When SpaceX filed an FCC application earlier this year proposing to launch a million satellite data centers into orbit, the company argued the project would have no meaningful environmental impact. On SpaceX’s website, Elon Musk made the case for space-based AI infrastructure in simpler terms: “It’s always sunny in space,” he wrote, arguing that orbital data centers are “obviously the only way to scale.”

However, researchers say the climate calculus is far more complicated than that. While orbital data centers could theoretically run around the clock on solar power, the tradeoffs extend far beyond electricity consumption.

“The social and environmental consequences are far greater than what we’re currently looking at with Earth-based alternatives,” says Peter Howson, a researcher at Northumbria University who recently authored a paper examining the risks and challenges of space-based computing infrastructure.

Rocket Launches and Climate Pollution

First, the emissions from each rocket launch are substantial. A single SpaceX Starship launch burns around a kiloton of liquid methane and produces as much climate pollution as a small city does in a year. Black soot emitted from rockets is long-lasting in the upper atmosphere and can cause significantly more global warming than the same pollution on the ground.

“Soot that comes out of the tailpipe in a car normally lasts maybe a few weeks in the lower atmosphere,” Howson says. “But when you put it into the upper atmosphere, it could stay there for years.”

Water vapor emissions also act as a potent greenhouse gas. Around 2 million liters of water are used to protect launch pads at every launch, and that process can wash toxic dust and debris into local ecosystems. In Texas, the state’s Commission on Environmental Quality and the EPA previously found that SpaceX repeatedly violated the Clean Water Act.

Launch Failures and Toxic Risks

Launches can go wrong. In 2023, when the first Starship test flight lost control and was destroyed after a few minutes, the wreckage covered the nearby Boca Chica State Park—home to endangered species—and started a fire. Since then, five Starships have exploded on their flight paths.

The launch and satellite equipment use toxic chemicals, including hydrazine-based propellants for maneuvering, lead solder, and ammonia for thermal control. Accidents or “rapid unscheduled disassemblies” can release hazardous substances—and in some cases, rather than staying in orbit, those materials can reenter the atmosphere and potentially rain down on people on Earth.

E-Waste and Ozone Depletion Concerns

Once in space, the equipment wouldn’t last long and would then create e-waste. “The environmental impacts of satellite ablation (atmospheric burning) are not well understood,” Howson writes in the paper, published in the journal Energy Research Social Science. “However, materials and gases released are likely to contribute to ozone depletion while potentially affecting the Earth’s ability to regulate solar radiation.”

Space is already crowded with satellites—and the number is quickly growing as tech companies race to add more space-based infrastructure.