Redstone VC · Interactive model · August 2026

The Compute Buildout (2026–2050)

How power, chips and space shape the future of compute

Compute is the base layer of progress. It drives economic growth, healthcare breakthroughs, and quality of life.

What decides how much of it the world gets is not only the supply of chips, engineers or capital. It is also the supply of power.

Data centres already draw close to 1.5% of the electricity the world can reliably generate, and that share is rising. There are 132 gigawatts of data-centre power worldwide today, about 132 reactors, against 10.5 terawatts of total generating capacity. Processors are designed and built in months; the power stations, substations and transmission lines that feed them take years, sometimes decades. AI demand is compounding against that slower base, and the distance between the two is now the central fact of the industry.

This report addresses four questions:

  1. Why is power the binding constraint, and not money?
  2. How much compute will the world build by 2050, and what does it demand of the energy system?
  3. Does compute take power from other consumers, or does it ride on new generation?
  4. What role do orbital data centres play, and what follows if they work?
132GW

data-centre power today, about 132 reactors

1,090×

more compute by 2050, Base Case

12–14%

of world electricity by 2050

2,000GW

orbital, if Musk is right

01 Power

The power bottleneck

For most of the computing era, progress was a story about chips. This era is a story about electricity. The mismatch: chips and data centres scale in months; power plants, grids and transformers scale in years. Once existing grid slack is absorbed, growth proceeds only as fast as new power can be built. Terrestrial build-out is near-identical across scenarios — the difference that matters is orbital.

Total data-centre power by scenario

Gigawatts, terrestrial + orbital, 2026–2050 · linear scale

The same buildout, counted in nuclear reactors

Each square ≈ one large nuclear reactor’s output (1 GW)

Today’s data centres already draw about a third of the output of the world’s entire nuclear fleet (~440 reactors, ~420 GW) — more than Germany’s peak electricity load (~79 GW). The squares count reactors’ worth of demand, not a forecast of nuclear build-out.

A dollar buys 37% more compute every year. A watt manages 34%. Epoch AI — and that gap is why money stops being the binding constraint.

Compute gets cheaper faster than it gets efficient

Cost falls faster than efficiency rises, and the gap widens across the whole period — capital buys ever more compute per unit spent, while physics does not concede at the same rate. Money stops being the binding constraint; what stays scarce is power. It also means a gigawatt cannot command today's price in 2050 — that returns as the decline dial in section 03.

Terrestrial vs orbital

Slowdown timing per Gartner: power limits new data-centre growth from 2026; 40% of AI data centres power-constrained by 2027; grid broadly insufficient by 2030. Gartner forecasts only to 2027 — the slowdown continuing to 2050 is our assumption, not their finding.

02 Energy reality

Compute and the power system

Global electricity supply grows roughly 3% a year (IEA), so the pie roughly doubles by 2050. Compute takes a growing share of a growing pie — it does not reduce what everyone else gets. Households, industry and transport keep growing in absolute terms in every scenario. Terrestrial only; orbital power is generated off-grid.

World electricity roughly doubles by 2050. Compute's slice: about 13%. Base scenario · all heavy industry combined today: ~40%.

Share of Earth's usable power

Data-centre electricity ÷ usable global generation · terrestrial only

Does compute take power from other consumers?

For scale: all heavy industry combined is roughly 40% of global electricity today. From 2028 the modelled data-centre electricity runs above the IEA's published path — deliberate: IEA counts announced projects; the model builds what power-constrained demand asks for. If the ~3%/yr of new global generation does not get built, compute and other consumers compete directly — that supply-speed limit is the whole argument for orbital.

03 The orbital option

What orbital compute could be worth

Disclosure: Redstone is an investor in SpaceX.

$1.25bn a month — what Anthropic pays today for one gigawatt in orbit. SpaceX S-1 — a filed contract price, not an estimate.

The contract covers roughly 1.0 GW across COLOSSUS and COLOSSUS II (S-1) — about $15bn per gigawatt per year. For scale: close to Spotify’s entire annual revenue (€17.2bn in 2025) — from a single gigawatt, every year. Apply that price to each scenario's orbital build and dial in how fast it erodes.

Don't believe the price? Move the dials — everything below recomputes.

Orbital compute revenue

$ trillions per year · whole orbital market, SpaceX leading · linear scale

The counterweight

Morningstar puts 7% on the Moonshot — and 43% on "No Go".

  • SpaceX's own S-1: orbital AI compute involves "unproven technologies or technologies that do not exist" and "may not achieve commercial viability"; the 100 GW/yr timeline "may be difficult or impossible to determine".
  • Morningstar values SpaceX's entire AI segment at ≈$170bn — "more akin to the value of a call option" — assigning ≈7% probability to the Moonshot case and ≈43% to "No Go".
  • Today SpaceX pays Google ~$920m/month for ~110,000 terrestrial GPUs while its orbital compute revenue is zero. Everything above is prospective.
  • A gigawatt cannot sell for today's price in 2050 while compute gets ~37%/yr cheaper — hence the decline dial. At 0% those two claims contradict each other.

04 Founder simulator

Simulate your start-up's impact on the world

A projection of this kind can feel remote from the decisions any single company makes, so the model ends by reversing the question: pick the area you are building in, set the levers, and we send you how far it moves the system. Twelve areas, three levers: more efficient (more compute per watt), cheaper (more compute per dollar), more capacity (more overall compute).

Don't believe one start-up can move the curve? Choose your area, add your link, then set the sliders.

Stays on this page until you request your results below.

We send your results here — nothing else.

The results are not shown on this page — they go to your inbox: the chart with your company's band in it, the year-by-year data behind it (CSV), your headline figures, and a link that reopens the simulator exactly as you set it.

World compute, with and without this founder

Billion PFLOPS (1 PFLOPS ≈ one H100 GPU) · Base scenario as fixed reference, so results stay stable across scenarios

The tool conveys scale rather than precision. Two companies pursuing the same lever with the same assumptions see the same figure, because it models the category rather than the firm. Its value lies in distinguishing work that moves the curve modestly from work that moves it substantially. Default improvements are the team's working estimates.

05 Sources & method

Every number, accounted for

Fixed inputs

Held constant across scenarios; from the methodology table in the white paper

InputValueStatus
Data-centre power, 2026132 GWSourced — Gartner
Compute per MW, 2026114 PFLOPS/MWCalibrated to Epoch (≈15M H100-equivalents)
Cost improvement, start37% a yearSourced — Epoch (30–45%)
PUE1.15Sourced — hyperscale range 1.1–1.2
Utilisation / load factor40%Chosen — calibrated to IEA
World generating capacity9.6 TWSourced — IRENA
Fleet capacity factor37%Sourced — Ember and IRENA
Global electricity supply growth~3% a yearSourced — IEA

Method: power first. Terrestrial capacity grows at Gartner's observed rate, then decays once the grid bites; compute per MW follows Epoch's efficiency curve with the same-shaped slowdown; orbital capacity ramps linearly from its start year to its 2050 endpoint; electricity = power × utilisation × PUE. Orbital revenue = orbital GW × a declining price per GW anchored to the Anthropic contract. Terrestrial electricity sits somewhat above the IEA's central projection from 2030 onwards, reflecting a higher assumed load factor — the IEA path is a conservative reference, not an upper bound. Morningstar figures accessed via secondary reporting — verify before publishing.

06 Tell us where we can improve

This model is a working instrument

The assumptions behind it are stated openly because we don't expect everything to be right, and we would rather find out from people closer to the work than we are. If you have better data, a different reading of the assumptions, or you are building in one of the twelve areas, we would like to hear from you.

Interactive companion to the Redstone research piece "The Compute Buildout (2026–2050)". Model finalised July 2026. Measured (Gartner, Epoch, IEA, IRENA, SpaceX S-1) vs chosen (slowdown strengths, orbital size and timing, revenue decline, valuation multiple) is labelled throughout. Disclosure: Redstone is an investor in SpaceX.

This page is provided for information only. It sets out modelled scenarios based on published data and stated assumptions and does not constitute investment advice or a recommendation.