Google, SpaceX Discuss Orbital Data Centers as $1.75 Trillion IPO Nears
Updated
Updated · TechCrunch · May 12
Google, SpaceX Discuss Orbital Data Centers as $1.75 Trillion IPO Nears
10 articles · Updated · TechCrunch · May 12
$1.75 trillion is the valuation SpaceX is preparing to pitch in an IPO later this year, with orbital data centers emerging as part of its AI-compute story.
Google is in talks with SpaceX on space-based data centers and is also speaking with other launch providers, broadening options for its Project Suncatcher effort.
By 2027, Google plans to launch prototype satellites under Project Suncatcher, a program unveiled late last year to test orbital computing infrastructure.
The push follows SpaceX's deal last week with Anthropic to use xAI's Memphis data center, with future cooperation on orbital facilities also under discussion.
Advocates say space could cut operating costs and sidestep local opposition to U.S. data-center buildouts, though current launch and satellite costs still make terrestrial sites cheaper.
Will orbital data centers solve AI's energy crisis or create an inescapable cage of space junk around our planet?
Is putting AI in space a visionary leap or 'peak insanity' doomed by physics, cost, and cosmic radiation?
Orbital Data Centers by 2030: How Google, SpaceX, and AI Demand Are Launching a $1 Trillion Space Compute Race
Overview
In May 2026, Google and SpaceX began key discussions to deploy data infrastructure beyond Earth’s atmosphere, marking a pivotal moment for computing. By combining Google’s strength in data management and cloud services with SpaceX’s expertise in space launch and satellite deployment, they aim to establish data centers in low-Earth orbit. However, a major challenge is the high cost of launching payloads into space. For Google’s Project Suncatcher to succeed, launch costs must drop significantly by the mid-2030s. This collaboration sets the stage for a new era of computing, driven by innovation and strategic partnership.