Today: SpaceX, Blue Origin and technology firms see orbital server farms addressing Earth’s power limitations; bipartisan Senate push aims to reduce water waste; S2G raises $1 billion to back companies in energy, agriculture.

Welcome back: Nvidia recently posted a job straight out of a science-fiction epic: orbital data-center system architect.

The Wall Street Journal's Micah Maidenberg and Merrill Sherman write that the chipmaker and other technology giants are working to take an idea that has captivated futurists—channeling the sun’s power through spacecraft to support activity on Earth—and make it reality for artificial-intelligence computing.

Proponents say offloading computing to orbit will allow AI developers to scale up the technology without the headaches they are facing on Earth, including efforts to ban data centers.

Operating orbital data centers will require engineers and executives to make advancements in everything from handling radiation to rockets. A big part of the challenge is producing and launching scores of the devices without breaking the bank. Some engineers don’t believe the math works, and big questions remain unanswered.

• Google is in talks with SpaceX for a rocket-launch deal as the search giant expands its own efforts to put orbital data centers in space, according to people familiar with the discussions. (WSJ)
• A British startup is at the center of a high-stakes pursuit by two of the world’s largest renewable energy players seeking a new form of the technology that harnesses more energy from the sun. (WSJ)
• A European initiative exploring the feasibility of building data centers in space has found that it could be economically viable while reducing the carbon footprint of the infrastructure powering the AI boom. (WSJ)

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Companies would be offered a tax incentive to set up water-recycling infrastructure under a new bill proposed by Republican and Democratic senators—the latest in a series of moves to tackle data-center water worries.

WSJ Pro Sustainable Business's Clara Hudson reports that the bill introduced Wednesday by Sens. Ben Ray Luján (D., N.M.) and Katie Britt (R., Ala.), would offer a 30% investment tax credit for data centers, manufacturers and other water-intensive industrial companies if they build water-reuse infrastructure. The move comes as drought conditions consume much of the U.S. following record-breaking temperatures.

The Advancing Water Reuse Act seeks to lessen the local impacts of water-guzzling operations such as data centers, which have sparked pushback across the country amid a mass build-out to power the AI boom. The credit would be awarded to businesses that install or upgrade their own on-site water-recycling systems, and those that build or expand municipal systems.

S2G Investments has raised $1 billion to back companies that strengthen energy and agriculture supply chains, as the firm expects rising fuel and food costs driven by the Iran war will make such businesses more valuable.

WSJ Pro's Luis Garcia writes that S2G backs companies that help boost seafood and ocean-related energy production. Last year it invested in XOcean, a provider of drone boats that collect geophysical data about seabeds that is used to maintain underwater cables and oil-and-gas pipelines as well as offshore-wind equipment. Also last year, the firm backed Echandia, a supplier of batteries that allow ferry vessels to run on electricity.

Lukas Walton, grandson of Walmart founder Sam Walton, co-founded S2G Ventures in 2014 and the firm operated as an investment arm of his family office, Builders Vision. Two years ago, S2G Ventures became independent and changed its name to reflect a broader focus beyond VC deals.

• Tesla will invest $250 million into its Berlin-Brandenburg factory to increase battery cell production for electric vehicles. (WSJ)
   
• Amazon has signed a deal for a rooftop heat pump that provides electric heating, efficient cooling, and cheaper energy bills. (Canary Media)
   
• Two recent studies of corporate sustainability claims found that more than 95% of statements could be classified as greenwashing. (Trellis)
   
• German energy company RWE reported a jump in earnings, with stronger offshore-wind results offsetting weak trading. (WSJ)
   
• Companies could be making better use of insurers to identify and mitigate climate risks in their operations. (Dow Jones Risk Journal)
   
• Coal shipments have surged as countries search for alternative fuels to replace oil and gas supplies disrupted by the Iran war. (FT)
   
• As water risks are exposed by conflict and data centers, Atoco is trialing a device that can pull 4,000 liters out of the air. (Bloomberg)
   
• Potato-chip bags in Japan are going black and white because of shortages of chemicals used in inks brought on by the Iran war. (WSJ)

WSJ Pro Sustainable Business gives you an inside look at how companies are tackling sustainability. Send your comments to editor Perry Cleveland-Peck at perry.cleveland-peck@wsj.com. Follow the WSJ Pro Sustainable Business team on LinkedIn at perrycp, clara-hudson and yusuf_khan.