Voyager Technologies ' CEO Dylan Taylor said two years would be an "aggressive" timeframe for space data centers and cooling remains a problem for the developing technology.
While SpaceX has the heavy lift rockets to bring components to space, Taylor told CNBC's Morgan Brennan that the lack of a cooling solution to transfer the heat remains a major barrier.
"It's counter intuitive, but it's hard to actually cool things in space because there's no medium to transmit hot to cold," he explained. "So essentially, all heat dissipation has to happen via radiation, which means you need to have a radiator pointing away from the Sun to do that."
Tesla CEO Elon Musk has long touted a future with data centers in space and highlighted the buildout as a primary reason for combining his rocket company SpaceX and his AI startup xAI this week in a deal valued at $1.25 trillion.
Voyager, which went public in June, is widely known for its Starlab project that is set to replace the International Space Station, which is slated to retire in 2030.