The exponential growth of Artificial Intelligence (AI) is creating an unprecedented demand for computing power, leading to significant challenges for traditional terrestrial data centers regarding energy consumption, cooling, and environmental impact. This escalating crisis is prompting major technology players, including Google, SpaceX, and various Chinese entities, to explore the radical solution of establishing AI data centers in Earth's orbit. These 'orbital data centers' or 'space-based supercomputers' aim to harness the abundant and continuous solar energy available in space, which can be up to eight times more productive than on Earth. The vacuum of space also offers a natural and efficient passive cooling environment, significantly reducing the need for water and energy-intensive cooling systems required on Earth. Several initiatives are already underway. Google's 'Project Suncatcher' plans to launch two prototype satellites equipped with its custom AI chips (TPUs) into low Earth orbit by early 2027 to test hardware resilience and data transmission efficiency. Similarly, China has launched the initial satellites for its ambitious 'Three-Body Computing Constellation,' a network of 2,800 satellites intended to function as an orbital supercomputer, processing data in space to overcome terrestrial bandwidth limitations. Other startups like Starcloud, backed by NVIDIA, are also developing space-adapted GPUs for orbital computing. However, this futuristic vision faces substantial hurdles. Challenges include the high costs of rocket launches, protecting sensitive hardware from cosmic radiation and extreme temperatures, ensuring reliable communication with Earth, and mitigating the growing threat of space debris. Regulatory frameworks for space-based infrastructure are also still evolving. Despite these obstacles, the momentum is building, with experts suggesting that space computing could become economically viable if launch costs continue to decrease. For India, with its rapidly expanding digital economy and AI adoption driving significant data center investments and power demands, these global efforts represent a relevant long-term solution to sustainable technological growth.