Are There Clouds on the Moon? Law, AI and Datacenters in Space

Artificial intelligence is driving an unprecedented demand for computing power, cooling and energy, prompting serious consideration of placing datacenters in orbit where continuous solar power, natural heat rejection and physical security may be easier to achieve than on Earth. Yet once compute infrastructure leaves the planet, the legal foundations of digital regulation become uncertain. This session explores how the engineering realities of orbital AI infrastructure - launch mass, power generation, communications latency and satellite classification - intersect with the law of outer space, telecommunications regulation, export controls, data protection and national security. Who has jurisdiction over data processed in orbit? Which state bears liability if an AI system operating from space causes harm? Does terrestrial privacy law apply when processing occurs outside any territory? The discussion argues that space-based compute collapses the traditional boundary between technology law and public international law, and may transform near-Earth orbit into the next contested domain of digital sovereignty.