Google and SpaceX are engaged in discussions to launch data centers into Earth's orbit, according to sources familiar with the matter cited by The Wall Street Journal. This potential collaboration emerges as SpaceX prepares for a massive $1.75 trillion IPO later this year. The company is positioning orbital data centers as the most cost-effective location for AI compute within the next several years to attract potential investors.
The news follows a significant deal last week between Anthropic and SpaceX to utilize computing resources from xAI’s Memphis, Tennessee data center, with an eye toward future orbital integration. SpaceX notably acquired xAI in February, consolidating its AI and infrastructure capabilities.
Google is reportedly exploring options beyond SpaceX, maintaining dialogues with other rocket-launch providers. Additionally, the search giant plans to launch its own prototype satellites by 2027 under "Project Suncatcher," an initiative first unveiled late last year to bolster its aerospace presence.
Elon Musk has actively promoted the hype for orbital data centers, claiming they offer lower operational overhead. Proponents also argue that space-based facilities are immune to the local backlash and utility hurdles that frequently plague ground-based infrastructure projects in the U.S. However, as previously reported, terrestrial data centers currently remain far cheaper once the massive capital expenditure of satellite construction and launch is factored in.
The relationship between the two tech giants is long-standing; regulatory filings show Google invested $900 million in SpaceX as far back as 2015. Both companies have been reached for comment regarding the current discussions but have yet to respond.
