Reports say Google is discussing orbital data centers with SpaceX as the race for AI compute accelerates and new satellite plans emerge.
A push to move data centers off Earth is picking up speed, with reports now pointing to talks between Google and SpaceX about launching compute facilities in orbit.
The Wall Street Journal report. citing sources familiar with the matter. says Google and SpaceX are in discussions aimed at putting data centers into space.. The idea is closely tied to the emerging demand for AI compute. and it reflects a growing belief among some industry players that orbital infrastructure could become part of the next wave of computing capacity.
The talks come as SpaceX prepares for an initial public offering later this year. with a reported $1.75 trillion valuation in the framing around the move.. The company is reportedly leaning into a near-term promise that data centers in orbit could become a low-cost option for AI compute within the next few years. a pitch that would hinge on launch costs. scalability. and the ability to manufacture and maintain systems in space.
The momentum also follows a deal involving Anthropic and SpaceX.. That agreement is described as using computing resources drawn from xAI’s data center in Memphis. Tennessee. while leaving open the possibility of collaborating on orbital compute in the future.. In this broader ecosystem. SpaceX acquired xAI in February. setting the stage for tighter integration between launch capacity. ground-based infrastructure. and potentially later orbital deployments.
Google is reportedly not limiting its discussions to SpaceX alone. The company is said to be talking with other rocket-launch providers as well, suggesting it is exploring multiple pathways to an orbital compute strategy rather than pinning everything on a single launch partner.
Separately. Google also has plans for prototype satellites by 2027 under an initiative called Project Suncatcher. which was announced late last year.. Those prototypes are positioned as part of a longer-term effort that could inform how data and energy systems work in space. even as the company weighs what a practical orbital data-center roadmap might look like.
Elon Musk has been a central voice driving public interest in orbital data centers. repeatedly arguing that they are cheaper to operate than keeping large facilities on the ground.. Supporters also point to a different set of barriers—those being local opposition to terrestrial buildouts—which they believe could be avoided when infrastructure is placed in orbit rather than constructed near communities.
At the same time, skepticism remains about whether orbital systems will beat Earth-based infrastructure on cost.. TechCrunch previously reported that today’s terrestrial data centers can be cheaper once the full bill is considered. including the costs of building satellite infrastructure and the expense of launching it.
The broader financial backdrop matters as these conversations take shape.. Google invested $900 million in SpaceX in 2015. according to regulatory filings. a relationship that may influence how quickly discussions can move from concept to execution.. For Google. choosing a partner is only part of the equation; operational control. compute availability. and the reliability requirements of AI workloads will all shape what any orbital plan can realistically deliver.
Beyond cost. orbital compute also raises practical questions around performance and durability. including how systems are assembled. upgraded. and protected from the harsh realities of space.. Even if the compute economics eventually favor orbit. the timeline will likely depend on whether prototype efforts—such as Google’s Project Suncatcher—can help translate ideas into repeatable infrastructure.
For now, TechCrunch reported that it reached out to Google and SpaceX for comment, but no additional details were provided in the reporting.
In Misryoum’s view. the significance of the story goes beyond a single partnership: it signals that the AI compute race is pushing major players to consider architectures that extend past traditional data-center models. and it raises the stakes for how quickly companies can turn orbital concepts into reliable capacity.
Google SpaceX orbital data centers AI compute Project Suncatcher satellite infrastructure cybersecurity and space tech