Google and SpaceX are in talks to launch orbital data centres in space, according to a Wall Street Journal report citing sources familiar with the matter — the latest sign that major AI players are exploring space as a possible frontier for next-generation compute infrastructure.
The potential deal comes as SpaceX prepares for a $1.75 trillion IPO later this year, with the company pitching investors on the idea that space-based facilities could become the cheapest location to run AI compute within the next few years. It also follows Anthropic’s deal last week to use computing resources from xAI’s data centre in Memphis, Tennessee — a partnership that could expand into orbital infrastructure in the future. SpaceX acquired xAI in February.
Google is reportedly engaging with multiple rocket-launch companies in parallel. The company plans to launch prototype satellites by 2027 as part of an initiative known as Project Suncatcher, which was announced late last year.
Elon Musk has been a vocal advocate for orbital data centres, arguing they are cheaper to operate and free from the local opposition increasingly attached to ground-based facilities in the United States. However, TechCrunch reported earlier this year that today’s terrestrial data centres remain significantly cheaper than orbital alternatives once satellite construction and launch costs are factored in.
The relationship between the two companies is long-standing. Google invested $900 million in SpaceX in 2015, according to regulatory filings.
