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While Elon Musk has been promoting an ambitious vision of orbital data centers as one of SpaceX’s major future businesses, another startup is pursuing a very different approach. Panthalassa, backed by Peter Thiel and a group of prominent technology investors, believes that ocean-based data centers offer a more practical and cost-effective solution.

The company is developing underwater facilities powered and cooled by the ocean itself. It began testing its prototype, Ocean-2, off the coast of Washington state in 2025. Panthalassa argues that this model could address many of the concerns surrounding land-based data centers, which have increasingly faced criticism for driving up utility costs, generating noise and pollution, and delivering limited economic benefits to local communities.

SpaceX, meanwhile, aims to begin launching its solar-powered orbital data centers by 2028. The concept envisions a vast network of satellites processing information in space and transmitting it back to Earth. The idea reflects the bold, futuristic vision often associated with Musk. However, the company’s IPO filing acknowledges the significant challenges involved, noting that the initiative depends on complex and largely unproven technologies that may require substantial advances before becoming commercially viable.

Source: Forbes