Google and SpaceX are in discussions to deploy data centers in orbit, according to reports, as both companies position themselves at the forefront of a nascent race to move AI computing infrastructure beyond Earth’s atmosphere.
The talks coincide with SpaceX’s anticipated $1.75 trillion IPO, in which Elon Musk has promoted orbital data centers as a potentially cheaper venue for AI compute within the coming years. The discussions also follow Anthropic’s recent agreement to use computing resources from xAI’s Memphis data center — with scope for future orbital collaboration — after SpaceX acquired xAI in February.
Google is simultaneously engaging other launch providers and plans to deploy prototype satellites by 2027 under an internal initiative called Project Suncatcher. The company previously invested $900 million in SpaceX in 2015.
Analysts have cautioned that satellite construction and launch costs currently make orbital infrastructure significantly more expensive than ground-based data centers, despite the political advantages of avoiding local opposition to terrestrial AI buildouts.
