• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
AIAmazon

Amazon AWS CEO Matt Garman pushes back against Elon Musk’s space data centers plan

Alexei Oreskovic
By
Alexei Oreskovic
Alexei Oreskovic
Editor, Tech
Down Arrow Button Icon
Alexei Oreskovic
By
Alexei Oreskovic
Alexei Oreskovic
Editor, Tech
Down Arrow Button Icon
February 3, 2026, 6:18 PM ET
AWS CEO Matt Garman
AWS CEO Matt GarmanNoah Berger—Getty Images for Amazon Web Services

Amazon has more than 900 data centers spread across the planet. And if you ask Matt Garman, the CEO of Amazon Web Services, that is exactly where they’ll stay for the foreseeable future. 

Recommended Video

Speaking at a tech conference in San Francisco on Tuesday, Garman threw some cold water on the notion of space-based data centers, which have been touted by Elon Musk and others as the future of AI. 

While putting AI data centers in space has obvious benefits, including the ability to harness energy directly from the sun, Garman said there are also some big obstacles to putting data centers in space or on other planets. Chief among them is the cost of transporting equipment. 

“I don’t know if you’ve seen a rack of servers lately: They’re heavy,” Garman said in an interview at the Cisco AI Summit in answer to a question about the viability of space-based data centers. “And last I checked, humanity has yet to build a permanent structure in space. So … maybe.”

The comments come one day after Musk announced the merger of SpaceX, his rocket company, with his AI company, xAI, in a deal that reportedly values the combined companies at a staggering $1.25 billion. 

“The capabilities we unlock by making space-based data centers a reality will fund and enable self-growing bases on the Moon, an entire civilization on Mars, and ultimately expansion to the universe,”  Musk wrote in a blog post Monday announcing the deal.

The modern data centers that power AI services, including chatbots like OpenAI’s ChatGPT and xAI’s Grok, are massive behemoths that can span millions of square feet and are packed with so much hardware that they have to be built on top of reinforced concrete slabs.

Musk’s SpaceX has a successful track record of launching thousands of its internet-beaming Starlink satellites into orbit on its Falcon rockets, and Musk has floated ambitious plans to use its Starship rocket to launch as many as 1 million satellites into space—an amount that’s far greater than the total number of objects launched into space in history. The blizzard of Starlink launches would lead to improvements in SpaceX’s rockets that will make space-based data centers a reality, Musk wrote on Monday, though he did not provide a timeline for when he expected it to happen.

Amazon has plans to create a constellation of internet-beaming satellites, dubbed Leo, to compete with SpaceX’s Starlink. The company has earmarked $10 billion for the project, according to CNBC, but progress has been slow, with Amazon recently asking the U.S. FCC to extend the timeline to launch 1,600 Leo satellites. 

Garman cited Musk’s 1-million-satellite plan during the Tuesday talk, and acknowledged that improvements in fuel and other aspects will make transportation into space less expensive. But for now, he stressed, the costs are a major bottleneck. 

In 2001, Fortune first convened “The Smartest People We Know,” bringing together CEOs and founders, builders and investors, thinkers and doers. Since then, Fortune Brainstorm Tech has been the place where bold ideas collide. From June 8–10, we will return to Aspen—where it all began—to mark 25 years of Brainstorm. Register now.
About the Author
Alexei Oreskovic
By Alexei OreskovicEditor, Tech
LinkedIn iconTwitter icon

Alexei Oreskovic is the Tech editor at Fortune.

See full bioRight Arrow Button Icon

Latest in AI

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in AI

Sal Khan
SuccessEducation
This CEO has teamed up with Google, Microsoft, and McKinsey to build an AI degree that could rival Harvard—and it will only cost $10,000 to attend
By Preston ForeApril 15, 2026
53 minutes ago
Why insurance giant Travelers’ CTO is placing fewer, bigger bets on AI
NewslettersCIO Intelligence
Why insurance giant Travelers’ CTO is placing fewer, bigger bets on AI
By John KellApril 15, 2026
1 hour ago
horowitz
AIdisruption
a16z’s Ben Horowitz sees ‘AI anxiety’ consuming Silicon Valley founders. Workers’ fear of something else is killing adoption
By Nick LichtenbergApril 15, 2026
1 hour ago
News outlets like NYT and USA Today are blocking the Internet Archive’s Wayback Machine to prevent AI training models from using their content
AIMedia
News outlets like NYT and USA Today are blocking the Internet Archive’s Wayback Machine to prevent AI training models from using their content
By Dave Lozo and Morning BrewApril 15, 2026
2 hours ago
raikes
CommentaryMicrosoft
Jeff Raikes: AI is capturing cognition — and most companies are building a talent debt they don’t see yet
By Jeff RaikesApril 15, 2026
3 hours ago
Exclusive: Artemis raises $70M to help fight AI-powered attacks with AI
CybersecuritySecurity
Exclusive: Artemis raises $70M to help fight AI-powered attacks with AI
By Sharon GoldmanApril 15, 2026
3 hours ago

Most Popular

Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
Success
Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
By Fortune EditorsApril 13, 2026
2 days ago
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
Commentary
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
By Fortune EditorsApril 14, 2026
1 day ago
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
Success
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
By Fortune EditorsApril 14, 2026
1 day ago
Palantir CEO says working at his $316 billion software company is better than a degree from Harvard or Yale: ‘No one cares about the other stuff’
Success
Palantir CEO says working at his $316 billion software company is better than a degree from Harvard or Yale: ‘No one cares about the other stuff’
By Fortune EditorsApril 14, 2026
1 day ago
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
AI
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
By Fortune EditorsApril 14, 2026
1 day ago
Warren Buffett’s first tax return showed $7 owed to the IRS. The then paperboy and former Berkshire Hathaway CEO is now worth $143 billion
Success
Warren Buffett’s first tax return showed $7 owed to the IRS. The then paperboy and former Berkshire Hathaway CEO is now worth $143 billion
By Fortune EditorsApril 14, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.