American firms sign landmark deal to beam solar power from space as Europe faces AI energy crunch

Two US technology companies have agreed a 20-year contract to supply electricity from orbit to underwater data centres, potentially opening a new source of clean energy as European governments struggle to meet the growing demands of artificial intelligence

Two American tech firms have signed a multi-billion-dollar deal to beam solar power from space back to Earth, in a move that could eventually help tackle the growing electricity demands of AI in Europe and beyond.

Virtus Solis, based in Michigan, has agreed to supply electricity generated by solar panels orbiting the planet to Brae Systems, a Chicago company developing underwater data centres.

The 20-year agreement is being described by the companies as the world’s first commercial power purchase agreement for space-based solar energy.

Under the deal, enormous solar panels will be placed onto satellites in orbit, where they will collect sunlight without being affected by clouds, bad weather or the normal cycle of day and night.

The electricity will then be transmitted back to Earth using radio waves and converted into usable power at specially designed receiving stations.

Virtus Solis believes the approach could eventually provide a constant supply of renewable electricity without the limitations affecting conventional solar farms.

Brae, meanwhile, plans to build computing facilities underwater, using the surrounding seawater to help cool the powerful processors needed to run AI systems.

Traditional data centres consume enormous amounts of electricity, both to operate their computers and prevent equipment from overheating.

Virtus Solis plans to supply an initial 100 megawatts of electricity, enough to deliver 876,000 megawatt-hours annually, through a receiving station to be built in Illinois.

Brae will also have the option to increase its supply to 250 megawatts within three years of the start of commercial operations, potentially taking annual output to 2.19 million megawatt-hours.

The announcement comes as European governments face growing concerns about whether their electricity networks can support the rapid expansion of AI.

According to the European Commission, data centres across the European Union consumed approximately 68 terawatt-hours of electricity in 2024, a figure projected to rise to 114 terawatt-hours by 2030.

The EU is also seeking to triple its data centre capacity within the next five to seven years, placing further pressure on electricity supplies, cooling systems and infrastructure.

Vishnu Indukuri, the chief executive of Brae Systems, said: “AI workloads require an unprecedented leap in both energy availability and thermal efficiency.”

He added: “Brae engineered underwater data centers to unlock natural free liquid cooling and bypass terrestrial bottlenecks.”

Space-based solar power is already attracting interest in Europe.

The European Space Agency has investigated the technology through its SOLARIS initiative, examining whether satellites could eventually provide a reliable source of clean electricity for European homes and businesses.

Britain is also exploring the possibility, with the UK Space Energy Initiative aiming to demonstrate an orbital solar power system by 2030 and develop a first operational system supplying electricity to the grid by 2040.

While the U.S deal does not involve supplying power to Europe, its success could offer important lessons for European energy planners seeking ways to support growing electricity demand while reducing dependence on fossil fuels.

Their first significant test is slated for March next year, when Virtus Solis plans to demonstrate improvements in wireless electricity transmission – a crucial step towards its ambition of supplying solar power from space.

John Bucknell, the founder and chief executive of Virtus Solis, said: “Signing the world’s first commercial RF space solar power purchase agreement represents an inflection point for the global energy transition and the future of compute.”

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_{Main image: An artist’s impression of Virtus Solis’s proposed space-based solar power system, which would collect sunlight using panels in orbit and transmit electricity wirelessly to receiving stations on Earth. The American company has signed a 20-year agreement to supply up to 250 megawatts of power to Brae Systems, potentially paving the way for round-the-clock clean electricity to support energy-hungry AI data centres. Credit: Virtus Solis Technologies}