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    Home»Business

    Amazon AWS CEO Matt Garman pushes again in opposition to Elon Musk’s house information facilities plan | Fortune – Company Technique & Outlook

    Admin - Shubham SagarBy Admin - Shubham SagarFebruary 4, 2026Updated:February 4, 2026 Business No Comments3 Mins Read
    Amazon AWS CEO Matt Garman pushes again in opposition to Elon Musk’s house information facilities plan | Fortune – Company Technique & Outlook
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    GettyImages 2249059883 e1770159138566 | Imperial Wire

    Amazon has greater than 900 information facilities unfold throughout the planet. And when you ask Matt Garman, the CEO of Amazon Net Companies, that’s precisely the place they’ll keep for the foreseeable future. 

    Talking at a tech convention in San Francisco on Tuesday, Garman threw some chilly water on the notion of space-based information facilities, which have been touted by Elon Musk and others as the way forward for AI. 

    Whereas placing AI information facilities in house has apparent advantages, together with the power to harness power immediately from the solar and the power to chill the heat-generating gear within the chilly environment of house, Garman stated there are additionally some massive obstacles to placing information facilities in house or on different planets. Chief amongst them is the price of transporting gear. 

    “I don’t know when you’ve seen a rack of servers currently: They’re heavy,” Garman stated in an interview on the Cisco AI Summit in reply to a query concerning the viability of space-based information facilities. “And final I checked, humanity has but to construct a everlasting construction in house. So … perhaps.”

    The feedback come sooner or later after Musk introduced the merger of SpaceX, his rocket firm, along with his AI firm, xAI, in a deal that reportedly values the mixed corporations at a staggering $1.25 billion. 

    “The capabilities we unlock by making space-based information facilities a actuality will fund and allow self-growing bases on the Moon, a complete civilization on Mars, and in the end enlargement to the Universe,”  Musk wrote in a weblog publish Monday saying the deal.

    The trendy information facilities that energy AI providers, together with chatbots like OpenAI’s ChatGPT and xAI’s Grok, are huge behemoths that may span thousands and thousands of sq. ft and are filled with a lot {hardware} that they need to be constructed on prime of bolstered concrete slabs.

    Musk’s SpaceX has a profitable monitor document of launching hundreds of its internet-beaming Starlink satellites into orbit on its Falcon rockets, and Musk has floated bold plans to make use of its Starship rocket to launch as many as 1 million satellites into house—an quantity that’s far larger than the full variety of objects launched into house in historical past. The blizzard of Starlink launches would result in enhancements in SpaceX’s rockets that can make house primarily based information facilities a actuality, Musk wrote on Monday, although he didn’t present a timeline for when he anticipated it to occur.

    Amazon has plans to create a constellation of web beaming satellites, dubbed Leo, to compete with SpaceX’s Starlink. The corporate has earmarked $10 billion for the challenge, based on CNBC, however progress has been sluggish, with Amazon not too long ago asking the U.S. FCC to increase the timeline to launch 1,600 Leo satellites. 

    Garman cited Musk’s 1-million-satellite plan through the Tuesday speak, and acknowledged that enhancements in gasoline and different features will make transportation into house cheaper. However for now, he harassed, the prices are a serious bottleneck. 

    This story was initially featured on Fortune.com

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