Who will regulate Elon Musk and China's data centers in space? (restofworld.org)

In recent weeks, multiple companies from the U.S. and China have announced plans to develop orbital data centers, leveraging the benefits of constant solar energy and cooling capabilities in space. Elon Musk highlighted this initiative, claiming it could be the most efficient location for energy-intensive AI applications. While this advancement represents a potential leap in computing, experts caution that it may exacerbate governance issues, particularly for developing nations with already fragile data sovereignty. For these countries, there is a risk of becoming mere consumers of AI technology without ownership or control over the infrastructure. The move to space-based data centers could undermine existing data localization policies, stripping local governments of regulatory power and potentially consolidating tech monopolies. As nations grapple with the environmental impacts of traditional data centers, the shift to orbital solutions raises complex questions about data ownership and governance. If developing countries are excluded from owning or managing these capabilities, they might find themselves increasingly dependent on global powers for their data processing needs, intensifying the digital divide. The ongoing U.S.-China tech competition further complicates this landscape, as both nations seek to establish dominance in this new frontier of computing.