Report: Google and SpaceX in talks to put data centers into orbit

Source: TechCrunch

Google and SpaceX in talks to launch orbital data centers

Image Credits: SpaceX (opens in a new window)

Context and Recent Deals

• The potential deal aligns with SpaceX’s preparation for a $1.75 trillion IPO later this year, positioning space‑based data centers as a cost‑effective solution for AI compute in the near future.
• It follows SpaceX’s recent agreement with Anthropic to utilize computing resources from xAI’s data center in Memphis, Tennessee, with the possibility of extending the partnership to orbital facilities. (SpaceX acquired xAI in February.)

Google’s Parallel Initiatives

• Google is also in talks with other rocket‑launch providers.
• The company plans to launch prototype satellites by 2027 under Project Suncatcher, an initiative announced late last year.

Economic Considerations

• Elon Musk has promoted orbital data centers as cheaper to operate and free from the local opposition that ground‑based builds often face.
• However, a recent TechCrunch analysis notes that, when accounting for satellite construction and launch expenses, terrestrial data centers remain significantly more economical than their orbital counterparts.

Investment History

• Google invested $900 million in SpaceX in 2015, as shown in regulatory filings.

Next Steps

TechCrunch has reached out to both Google and SpaceX for comment.