Researchers at the University of Pennsylvania have developed a design for orbiting data centers using tethers, which are cables made up of thousands of individual computer nodes. This design aims to address scalability issues faced by other orbiting data center designs, with passive tethers that maintain their orientation in space without constant adjustments. The system can support up to 20 megawatts of computing power and is resilient against micrometeoroids. Startups like OrbitAI and Aetherflux are already working on similar projects, leveraging solar power in space to address energy needs for artificial intelligence. This innovative approach could potentially help reduce the energy and water demands of data centers on Earth.