Google and SpaceX in talks to launch orbital data centers in space

Google and SpaceX are in talks to launch orbital data centers in space, according to The Wall Street Journal citing sources familiar with the matter. SpaceX is preparing for its $1.75 trillion IPO later this year, with orbital data centers positioned as a future cost advantage for AI compute.

SpaceX recently acquired xAI in February and made a deal with Anthropic last week to use computing resources from xAI's data center in Memphis, Tennessee, with potential to collaborate on orbital data centers in the future. Google is also talking to other rocket-launch companies and plans to launch prototype satellites by 2027 as part of Project Suncatcher.

Elon Musk has promoted orbital data centers as cheaper to operate and free from local opposition facing U.S. ground-based buildouts. However, terrestrial data centers remain much cheaper than those in orbit when satellite construction and launch costs are included.