Google and SpaceX are reportedly in discussions to launch orbital data centers, according to sources cited by The Wall Street Journal.
The prospective agreement surfaces as SpaceX prepares for its $1.75 trillion IPO later this year, promoting the concept that space-based data centers will soon be the most cost-effective location for AI computation. This development follows SpaceX’s recent agreement with Anthropic to utilize computing resources from xAI’s data center in Memphis, Tennessee, with future collaborations on orbital data centers being a possibility. (SpaceX acquired xAI in February.)
Google is also in talks with other rocket-launch firms. Additionally, the company plans to deploy prototype satellites by 2027 under an initiative called Project Suncatcher, announced late last year.
Elon Musk has generated excitement for orbital data centers, arguing they have lower operating costs and avoid local opposition seen with U.S. ground-based projects. Nonetheless, as previously reported by TechCrunch, present-day terrestrial data centers remain more economical than orbital ones when satellite construction and launch expenses are considered.
In 2015, Google invested $900 million in SpaceX, as indicated by regulatory filings.
TechCrunch has reached out to Google and SpaceX for a response.