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The U.S. and China are in a race to develop space-based data centers, with companies like SpaceX and Blue Origin at the forefront, aiming to utilize solar energy and vacuum cooling for artificial intelligence demands. Notably, startup Starcloud has successfully trained a large language model in space, while projections suggest that U.S. data center power needs could double by 2030, highlighting the potential for significant energy cost reductions through orbital solutions. Despite challenges such as radiation hardening and low-latency data transfer, advancements in this sector could transform the landscape of data centers and promote sustainable computing.