SpaceX has asked US regulators to approve a new satellite system that would act like a large, space-based computing network. Several outlets report that SpaceX filed a request with the US Federal Communications Commission (FCC) for an “orbital data center” constellation. This could include up to one million satellites in low Earth orbit, powered mainly by solar energy and connected using laser links.

The idea is simple. Instead of building more data centers on land, SpaceX would place computing hardware in orbit and run it on sunlight. The system would then handle heavy computing tasks, including AI workloads, without drawing electricity from local grids on Earth.

AI Is Pushing Power Systems to the Edge

The scale is what makes the proposal unusual. Today, there are roughly 15,000 satellites in orbit, and reports say more than 9,600 are active Starlink satellites. A one-million-satellite “data center” network would be far larger than anything proposed so far.

However, the “one million” figure appears in reporting tied to the FCC filing, but regulators have not yet approved the plan. Several analysts and engineers quoted in coverage also treat the number as a maximum request, not a final build plan.

The FCC filing stated:

“By directly harnessing near constant solar power with little operating or maintenance costs, these satellites will achieve transformative cost and energy efficiency while significantly reducing the environmental impact associated with terrestrial data centers.”

SpaceX’s proposal arrives during a period of fast growth in computing demand. The International Energy Agency (IEA) estimates that data centers consumed about 415 terawatt-hours (TWh) of electricity in 2024. This is roughly 1.5% of global electricity use. Demand has grown by around 12% each year for the last five years.

Older IEA work also highlighted how quickly demand can rise. One IEA scenario noted that data centers consumed 460 TWh in 2022. In a worst-case situation, this could exceed 1,000 TWh by 2026. The increase depends on trends in AI, crypto, and efficiency.

This demand growth has significant effects on power systems. Utilities, cities, and local communities often push back when new large data centers arrive. The concerns include higher power demand, water use for cooling, and land use. Thus, SpaceX and Elon Musk have framed space-based computing as a way to reduce pressure on Earth’s power grids.

That is where renewables enter the story. Globally, clean energy investment is already rising fast. The IEA said total global energy investment exceeded US$ 3 trillion in 2024, with around US$ 2 trillion going to clean energy technologies and infrastructure. BloombergNEF reported that clean energy investment reached $2.3 trillion in 2025.

Why Space Looks Tempting for Energy-Hungry AI

Space has one obvious advantage: sunlight is steady above the clouds. Solar panels in orbit can receive strong sunlight for long periods, depending on their orbit and design.

SpaceX’s pitch, as described in reporting, leans on that idea: a solar-powered platform in orbit could run without fuel deliveries and without drawing power from Earth’s grid.

Orbital compute could also reduce “latency” for some tasks in theory. If a user needs fast responses across large regions, satellites can route data without depending on ground networks in certain cases. SpaceX already uses laser links across Starlink satellites for routing. That experience may be part of the logic for a computing-focused network.

Space also avoids some land-based constraints. On Earth, data centers need large sites, grid connections, and cooling systems. SpaceX and supporters argue that orbit may reduce some land and water issues, at least in principle.

Recent market analysis shows the orbital data center market is set for quick growth. This is due to the rising demand for AI computing and energy limits on Earth. Analysts expect the orbital data center market to rise from around US$ 1.77 billion in 2029 to nearly US$ 39.1 billion by 2035, a compound annual growth rate of about 67.4%.

The surge comes from several factors. These include prototype satellite launches, solar-powered compute ideas, and interest from companies like Google, Nvidia, and SpaceX.

• MUST READ: Tech Giants Like NVIDIA and Google Eye Space to Power AI with Orbital Data Centers

However, the advantages offered by space do not remove the biggest engineering problems.

The Hard Parts: Physics, Maintenance, and the Messy Reality of Orbit

A major challenge for computers in space is waste heat. Computer chips turn much of their electricity into heat. On Earth, air and water systems carry heat away. In space, there is no air. Objects mainly lose heat through radiation, which can require large radiator surfaces.

That is why experts have raised doubts and concerns, including:

These constraints do not mean orbital data centers are impossible. But they explain why most experts treat this as an early-stage concept rather than a near-term build plan.

A Signal of Stress in the AI–Energy Equation

Even if SpaceX never launches a million satellites, the proposal highlights a key issue. The AI boom is driving up electricity demand. Energy planners are now looking for new ways to supply and use energy more efficiently.

• SEE MORE: AI Drives a Transformative Wave in Global Data Centers – and Energy Is the Real Bottleneck

The IEA’s data shows the scale of the challenge. With data centers already at about 415 TWh in 2024, even modest growth adds large new loads to power systems.

On the supply side, the global investment trend favors clean energy. The IEA expects clean energy technologies and infrastructure to take over US$ 2 trillion of global investment in 2025, larger than total spending on oil, gas, and coal.

This sets up two parallel paths:

• First, most near-term data center growth will stay on Earth. That means grids, renewables procurement, storage, and efficiency standards will do the bulk of the work.
• Second, a smaller group of companies may test space-based power or computing systems.

Beyond SpaceX, several other firms are exploring solar-powered orbital computing. Starcloud has already launched a satellite with an NVIDIA GPU to test high-performance computing in orbit, backed by seed funding and solar panel grids to power large data loads.

Axiom Space plans to send orbital data center modules to the ISS by 2027, while Google’s Project Suncatcher aims to power AI workloads via solar satellites. China’s ADA Space is developing a constellation of thousands of AI-enabled satellites.

SpaceX’s filing has also drawn attention to other efforts and interest in space-based energy and computing concepts, even if the timelines remain uncertain.

For now, its proposal highlights how quickly the search for new computing and energy models is expanding beyond Earth. Orbital data centers remain early in development, but they reflect growing interest in pairing constant solar power with high-density computing at scale.

As launch costs drop and space technology improves, orbital systems may become a good alternative to ground-based data centers. This is especially true for energy-heavy tasks. The idea signals a longer-term shift in how and where digital infrastructure may be built.

• READ MORE: Orbital Data Center Guide: Everything You Need to Know About This Next-Gen Space Computing Technology

The post Elon Musk’s SpaceX Eyes Solar Data Centers in Space to Power the AI Boom appeared first on Carbon Credits.

India is preparing a major public funding push for carbon capture, utilization, and storage, also known as CCUS. In the Union Budget for 2026–27, the government set out a plan to support CCUS with a proposed outlay of ₹20,000 crore over the next five years. That is ₹200 billion, which is about US$2.2 billion.

The budget document places the measure under efforts to improve long-term energy security and stability. It also describes CCUS as a scheme with that ₹20,000 crore outlay.

The amount matters because CCUS is expensive and hard to scale. A clear budget line signals that India wants to move beyond small pilots and research projects. It also shows the government is looking for options to reduce emissions in industries that are difficult to clean up quickly.

The plan comes as India faces a practical challenge. The country is building large amounts of renewable energy, but parts of the economy still rely on high-emitting industrial processes.

Cement, steel, refineries, chemicals, and thermal power remain central to growth. These sectors often cannot cut emissions to near zero with renewables alone, at least not in the short term. This is where the government sees a role for carbon capture.

From Policy Papers to Pipes and Storage

The budget measure points to CCUS as a way to raise “technology readiness” and expand end-use applications. In plain terms, that means the government wants more projects that move from study to real equipment in real plants. It also suggests the plan will target large emitting sectors where capture and storage could, in theory, reduce emissions without shutting down existing production too quickly.

India’s Ministry of Petroleum and Natural Gas has already described CCUS as an area where it is working to build a practical strategy and encourage collaboration across the oil and gas sector. That includes planning for how to implement capture, transport, use, and storage options in India’s energy system.

This new budget funding could connect to that effort in two ways.

• First, it can reduce early financial risk for companies. Carbon capture equipment adds cost. It also adds operating needs, such as energy use, maintenance, and monitoring. Without support, many firms delay investment because they do not see a near-term return.
• Second, it can help build shared infrastructure. CCUS is not just one machine, and it often needs pipelines, compressors, monitoring systems, and long-term storage sites. Shared infrastructure can lower costs when several plants connect to the same transport and storage network.

The budget document does not yet list every rule, incentive rate, or eligibility condition in the public summary. But the stated five-year outlay sets a clear ceiling for public support and signals that the government expects a pipeline of projects, not a single pilot.

• MUST READ: What is Carbon Capture and Storage? Your Ultimate Guide to CCS Technology

Why India is Looking at Carbon Capture Now

India has set a long-term goal of net-zero emissions by 2070. That pledge has shaped policy planning across power, industry, fuels, and carbon markets.

In a 2022 press release on a national CCUS policy study, the government highlighted India’s climate direction, including steps toward net zero by 2070 and the need to cut emissions in hard-to-abate sectors.

In late 2025, India also released a national R&D roadmap for CCUS through the Department of Science and Technology. The roadmap aims to guide coordinated action and speed up technology deployment, with a focus on hard-to-abate sectors such as cement, steel, and power.

These moves show a pattern. India is building the “soft” parts of a CCUS system first—research priorities, policy frameworks, and coordination. The budget outlay is a step toward the “hard” parts—real projects and infrastructure.

There is also an external trade pressure. Many Indian exporters expect stricter carbon rules in major markets. Policies such as the European Union’s carbon border measures have pushed firms to look for ways to reduce the emissions tied to their products.

CCUS is one option that can reduce emissions at the facility level, especially in cement, steel, and refining, where process emissions are hard to remove.

At the same time, India still needs to expand its energy supply for growth. That includes reliable power for industry and cities. A CCUS program can fit into this reality because it aims to cut emissions without requiring an immediate shutdown of existing assets.

A Tool for Tough Emissions, Not a Silver Bullet

CCUS works in three main steps. First, a plant captures carbon dioxide from flue gases or industrial streams. Second, it compresses and transports the CO₂. Third, it stores the CO₂ underground or uses it in products such as fuels, chemicals, building materials, or enhanced oil recovery.

In practice, storage is the main constraint. Projects need suitable geology, injection tests, monitoring systems, and long-term rules on liability. Without proven storage, capture alone does not deliver lasting emissions cuts. Below is India’s carbon storage capacity shown in a geological map:

Globally, CCUS remains far below the scale required in net-zero scenarios. The International Energy Agency (IEA) estimates that global carbon capture capacity reached just over 50 million tonnes of CO₂ per year as of early 2025. This is up modestly from earlier years but still far below the levels needed in most net-zero climate pathways.

In its Net Zero pathway, capture rises to 1,024 Mt by 2030 and 6,040 Mt by 2050. As of early 2025, only just over 50 Mt per year of capture capacity is operating worldwide.

The IEA reports that even if all planned projects move forward, global capture capacity will only hit about 430 Mt per year by 2030. The planned storage capacity is around 670 Mt. This gap explains why the IEA stresses faster storage development and shorter project lead times.

India has been laying the groundwork for this challenge. A draft 2030 CCUS roadmap linked to the oil and gas sector compiles early estimates of national storage potential.

It identifies deep saline aquifers as the largest category, with about 291 gigatonnes (Gt) of estimated capacity. It mentions potential storage of 97–316 Gt in basalt formations, 3.5–6.3 Gt in coal reservoirs, and around 1.2 Gt in oil fields for CO₂-enhanced oil recovery. These figures reflect theoretical or early-stage estimates and still require site-level validation.

CCUS is most relevant in hard-to-abate sectors where emissions come from chemistry, not just fuel use. Cement is a clear example. Even with clean power, roughly half of cement emissions come from the calcination process itself. Steel also poses challenges, as the sector emits high carbon.

Costs remain a key barrier. The IEA estimates capture costs of $15–25 per tonne of CO₂ for high-purity industrial streams. In contrast, more diluted streams, like cement or power generation, cost $40–120 per tonne. Transport, injection, and long-term monitoring add further costs and complexity.

These limits explain why CCUS is not a replacement for renewables, efficiency, or electrification. India’s policy shows that the government views CCUS as a helpful tool. It can cut emissions in tough sectors, but only if storage, regulation, and project delivery happen quickly.

Where the Money Goes Will Matter Most

The headline figure—₹20,000 crore over five years—sets the scale. What matters next is how the money is used.

Project selection will shape outcomes. A focus on a few large hubs could support shared CO₂ transport and storage. A scattered approach may fund pilots but limit infrastructure build-out.

Sector priorities also matter. Budget signals point to power, steel, cement, refineries, and chemicals—all high-emitting industries with large and, in some cases, concentrated CO₂ streams.

Rules will be just as important as funding. India is developing an Indian Carbon Market under the Carbon Credit Trading Scheme. Companies will need clarity on whether captured and stored CO₂ can earn credits and under what standards.

Storage readiness remains a final test. Proven sites, test drilling, and long-term monitoring will be essential to move from plans to scale. If these pieces align, public funding could accelerate real deployment. If not, it may support pilots without delivering deep emissions cuts.

For now, the budget line makes one point clear. India is putting real public funding behind carbon capture, and it is doing so with an amount large enough to change corporate planning in several heavy industries.

• READ MORE: NTPC Partners with Rosatom and EDF, Sparking a Nuclear Energy Revolution in India

The post India Puts $2.2 Billion for Carbon Capture in 2026-2027 Budget appeared first on Carbon Credits.

TotalEnergies signed a 10-year deal to supply 800 GWh of renewable electricity to SWM International. SWM is a big paper maker in France. The contract began in January 2026 and will cover electricity for three industrial sites over a decade. This deal marks another step in TotalEnergies’ push to expand its clean power business and help heavy industries reduce carbon emissions.

Under the agreement, TotalEnergies will deliver renewable electricity with a stable output profile, also known as clean firm power. This means SWM will receive low-carbon electricity that meets its energy needs around the clock. The supply will come from around 50 megawatts (MW) of renewable energy assets that TotalEnergies already has in France.

SWM says the deal will provide about half of its electricity needs in France and strengthen its plan to cut Scope 1 and Scope 2 emissions by 2033. The long-term contract also gives SWM better cost predictability and support for its decarbonization goals.

Giuliano Scilio, SWM’s Vice President and Chief Information Officer, stated in the release:

“For an energy-intensive industry like ours, this isn’t just an environmental milestone; it’s a strategic investment that gives us cost predictability and strengthens our ability to offer customers genuinely sustainable solutions.”

TotalEnergies’ Clean Energy Strategy

TotalEnergies has been expanding its renewable power business in recent years. The company blends renewable sources, like solar and wind, with flexible assets. These include gas turbines and storage.

This way, the oil giant provides customized clean energy solutions for industrial and corporate clients. These solutions are known as “Clean Firm Power.” They provide stable, low-carbon electricity that meets demand all day long.

As of late October 2025, TotalEnergies had more than 32 gigawatts (GW) of installed gross renewable electricity capacity. The company plans to hit 35 GW by the end of 2025. By 2030, it aims to generate over 100 terawatt-hours (TWh) of net electricity. This will include renewable and flexible power sources.

This clean power offering is part of a broader shift within TotalEnergies. The company is moving beyond its traditional oil and gas business to build a diverse portfolio of energy solutions. These include renewables, low-carbon hydrogen, biofuels, and electricity contracts. They help industrial clients meet climate goals while keeping operations reliable.

Big Deals, Big Impact

The SWM deal adds to the clean power contracts TotalEnergies has signed with big companies.

The chart shows TotalEnergies’ clean power deals from 2020 to 2026. Between 2020 and 2022, no large renewable contracts were publicly announced. Deals started increasing in 2023 with 850 GWh, then grew sharply in 2024 and 2025. Data for 2026 includes only this SWM deal.

In November 2025, TotalEnergies signed a 10-year deal to provide 610 GWh of renewable electricity to Data4. This contract begins in January 2026 and supports a European data center operator in Spain. This energy comes from wind and solar farms in Spain. It shows the rising need for clean power in digital infrastructure.

The oil major also signed a renewable electricity deal with Saint-Gobain. This agreement covers 875 GWh over five years, starting in 2026. It supports industrial decarbonization in France.

In December 2025, the company made a 21-year renewable power deal with Google. This agreement will provide 1 terawatt-hour (1 TWh) of certified renewable energy from a solar plant in Malaysia. This deal supports Google’s data-centre energy needs and renewable targets in Southeast Asia.

• SEE MORE: Google Signs Solar Deals with TotalEnergies and Shizen Energy in Malaysia to Power Data Centers with Clean Energy

Taken together, these contracts show TotalEnergies’ growing role as a supplier of long-term clean energy to major corporate and industrial customers.

Why This Deal Matters for Industry Decarbonization

Long-term renewable power contracts like the SWM deal are important for several reasons:

• Emission reductions: 
  

Renewable power deals help companies reduce their Scope 1 and Scope 2 greenhouse gas emissions. Scope 1 covers direct emissions from operations. Scope 2 includes emissions from purchased electricity.

By securing renewable electricity, SWM expects to cut these emissions significantly on its way to net‑zero goals. In the SWM case, the clean power deal covers about half of its electricity needs and supports its target to reduce emissions by 2033.

• Growing corporate demand:

Global corporate demand for clean energy continues to rise. In 2024, companies worldwide signed record volumes of renewable power purchase agreements (PPAs), with around 68 GW of deals announced. This was about 29% growth from the year before. Data centers, manufacturers, and heavy industries are some of the largest buyers of renewable energy.

• Stable costs:

Long‑term contracts provide predictable power costs. They help companies plan budgets and capital spending. This is important where electricity prices change quickly or where energy costs are a large part of total expenses.

• Clean energy growth:

Such power deals support more solar, wind, and low‑carbon energy on the grid. Across the world, renewable capacity is growing fast. In 2024, renewables accounted for nearly all new power installed, with solar and wind making up about 96% of new capacity. This expansion helps reduce reliance on fossil fuels.

• Reliable power:

Clean firm power mixes renewable generation with flexible resources. This approach helps keep the electricity supply steady even when the sun isn’t shining or the wind isn’t blowing. TotalEnergies designs its contracts this way so heavy industrial users can run without interruptions.

The Growing Market for Clean Power

The market for renewable energy and long-term power contracts continues to grow worldwide. Corporate procurement of renewable energy via power purchase agreements (PPAs) hit record highs recently. The surge came from strong corporate climate commitments. It also rose due to higher electricity demand from data centers and industry.

In 2024, global corporate renewable power purchase agreements reached 68 GW of capacity. Big energy users, such as tech firms, manufacturers, and utilities, want to match their electricity use with clean energy. This growth reflects that demand.

By 2030, analysts expect renewable generation capacity to top 5,000 GW globally. That’s more than double the levels seen in 2024. Countries and companies are investing in clean energy to hit climate targets and boost energy security.

In this climate landscape, energy companies such as TotalEnergies are becoming integrated power suppliers. Their business model seeks to meet the growing corporate demand for stable, low-carbon electricity. Long-term clean power deals boost investment in new renewable projects. They also provide steady revenue for energy producers.

Providing Clean, Reliable Power to Users Globally

TotalEnergies’ 10-year, 800 GWh renewable electricity deal with SWM shows the company’s growing role in clean energy. The deal will help SWM cover half of its electricity needs with low-carbon sources. This supports its decarbonization goals through 2033.

TotalEnergies’ strategy mixes renewable energy with flexible assets. This approach provides clean, reliable power to industrial users globally. As renewable capacity grows and corporate demand increases, such long-term supply agreements will likely play a larger role in the global energy transition.

• READ MORE: Google and TotalEnergies Unlock Carbon-Free Future for Ohio Data Centers with 15-Year Solar Deal

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