SpaceX's orbital computing initiative may circumvent growing political resistance to terrestrial data center construction in the U.S., according to a note from Evercore ISI. The analyst firm highlights that opposition to local data centers has intensified, with 75% of Americans now opposing such projects near their homes, up from 42% a year ago.
Political rhetoric surrounding data centers and artificial intelligence is expected to intensify ahead of the Nov. 3 midterm elections, Evercore ISI analyst Kutgun Mural noted. He warned that negative headlines could accumulate around the AI sector during this period, potentially disrupting terrestrial data center development timelines.
The firm estimates that by 2029, no additional terrestrial data center capacity will be required if SpaceX successfully scales orbital computing. This shift could provide SpaceX with a significant cost and speed-to-market advantage while avoiding the political and regulatory pressures plaguing ground-based facilities.
Regional disruptions illustrate the challenges facing terrestrial data centers. In Texas, up to 1,800 projects have been suspended pending audits, while Pennsylvania has withheld licenses until developers secure full local approvals. Even in Southaven, licensing and environmental concerns continue to pose obstacles for data center operators.
Evercore ISI suggests that orbital computing could redefine the infrastructure landscape, offering a viable alternative to the bottlenecks crippling traditional data center expansion.
