Jeff Bezos: Orbital Data Centers Realistic, But Timelines Ambitious

Amazon founder Jeff Bezos said 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."

These 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.

The comments from the billionaire tech entrepreneur come ahead of SpaceX's IPO filing, expected as soon as this week. Space stocks have rallied in the lead-up on hopes that the IPO and President Donald Trump's "Golden Dome" defense system plans will drive more capital to the sector and create more government contracts.

SpaceX was most recently valued at $1.25 trillion by Musk after he merged it with xAI, and could be looking at a valuation of $1.75 trillion or even higher when it goes public.

Bezos said he isn't keyed into how much of that valuation is based on financials or a bet on the future, but, "One thing I can tell you for sure is that space is going to be a gigantic industry."

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

The company 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, Bezos said.

"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," he said. "It's probably going to happen faster than most people think."

— CNBC's Annie Palmer contributed reporting