From "spa data centers" to "space servers": The energy crisis is reshaping the cloud computing industry

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With the explosive growth of artificial intelligence workloads, traditional digital infrastructure is facing unprecedented challenges in terms of energy and physical limits, forcing the industry to reimagine the physical form of data centers. From using waste heat from servers to power community spas, to launching computing nodes into Earth orbit to take advantage of round-the-clock solar energy, a radical architectural transformation aimed at solving the energy bottleneck is underway in the cloud computing industry.

According to CNBC's report on the 29th, Simone Larsson, Head of Enterprise AI at Lenovo, warned that the industry is approaching a “tipping point,” at which existing data center architectures will no longer be suitable. As more and more AI tasks flood into these energy-intensive facilities, the pressure on the power supply chain will increase sharply, forcing tech giants and infrastructure developers to think beyond tradition and explore “out-of-the-box” solutions that can ease grid pressure and meet sustainability goals.

This trend is spawning a new investment track, extending from transforming ground infrastructure to exploring space. Research projects funded by the European Space Agency and startups like Starcloud, backed by NVIDIA, are accelerating the race for “orbital data centers,” with Thales Alenia Space planning its first orbital demonstration mission in 2028. Meanwhile, despite huge technological and cost hurdles, about €70 million (approximately $82 million) in private capital has flowed into space data center projects since 2020.

However, analysts point out that, despite these visionary proposals' efforts to address the contradiction between AI competition and climate goals, there are still severe challenges in the short term. From lagging regulatory policies to high engineering costs and radiation risks in the space environment, investors need to be aware that this infrastructure reconstruction is not just a technological leap, but also a long-term test of capital efficiency and policy adaptability.

Ground Architecture Reconstruction: From “Data Villages” to Thermal Circulation

According to Lenovo's “Future Data Center” research conducted in partnership with Opinium, traditional data centers are failing to support AI workloads effectively and are struggling to meet ever-tightening sustainability and compliance requirements. While most IT decision-makers prioritize energy-saving technology partners, only 46% of respondents believe that their current data center designs can support sustainability goals.

Faced with this dilemma, Lenovo joined up with architectural firm Mamou-Mani and engineering company AKT II to propose radical design concepts. These include “data villages” and “data center spas.” In this concept, servers are stacked modularly near cities, with excess heat channeled to nearby schools or homes. In the “data spa” concept, waste heat is used for wellness facilities, and the heat from the spa, in turn, can be reused in data center cooling technologies. James Cheung, partner at Mamou-Mani, says the design aims to use the principles of biomimicry to break the stereotype of data centers as “faceless giant boxes,” achieving symbiosis with local communities.

In fact, some commercial practices for reusing heat energy have already been implemented. Last summer, Equinix used excess heat from its data center to heat the swimming pool for the Paris Olympics. In addition, back in 2018, Microsoft deployed underwater data centers using seawater cooling and tidal energy. However, Lenovo also admits that, limited by regulations and engineering complexity, some of its avant-garde designs may not be fully feasible until 2055 or even later.

Aiming for Orbital Space: Expensive but Tempting Space Race

Beyond Earth, competition to send servers into orbit is heating up. Projects such as Google’s science fiction-inspired “Suncatcher,” Alibaba and ZJ Lab’s “Three-Body Computer Constellation,” and Starcloud, backed by NVIDIA, are exploring the potential of space environments. In November last year, Starcloud sent a chip into space whose performance is 100 times that of any previous on-orbit GPU computing capability.

The main appeal of space data centers lies in the vacuum-cooling advantages and round-the-clock solar power available in orbit. The EU-funded ASCEND research project is working with Thales Alenia Space to explore the possibility of using robotics to launch and assemble centers in orbit. Thales Alenia Space is currently developing related technologies, aiming for the first orbital demonstration in 2028.

Despite its allure, the commercial feasibility of deploying data centers in low orbit remains questionable. Jermaine Gutierrez, a researcher at the European Space Policy Institute (ESPI), admits that this is unrealistic in the short term. The major obstacles are soaring launch costs, the need for radiation-proof hardware, and maintenance difficulties. Perkins Liu, senior research analyst at S&P Global, points out that launching large, high-powered computing systems into orbit is extremely expensive. ESPI's cost model shows that the success of space data centers largely depends on whether launch prices for vehicles like Starship can drop to the $10 million level.

Real-World Challenges: Regulatory Barriers and Cost Considerations

Whether it’s innovative ground designs or grand space ambitions, regulation and cost remain unavoidable barriers. Perkins Liu of S&P Global emphasizes that data center operators can adopt green technologies, but must do so within financially reasonable limits. Due to abundant land resources and relatively flexible regulations, the US is more likely to adopt large-scale, ultra-high-density data center campuses; in contrast, Europe is limited by its grid and strict regulations.

Moreover, regulatory policy adjustments lag behind technological innovation. Lenovo’s Simone Larsson points out that simply refurbishing old facilities is not always effective, which traps operators in an “already broken cycle.” She believes companies need to clarify which regulatory restrictions need to be relaxed so that they can serve humanity while ensuring corporate profits. In this process, upgrading the power grid and rapidly deploying renewable energy are the basic prerequisites for any innovation.

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