Google and SpaceX Explore Building Data Centres in Space to Meet AI Demand

By: Harsh Vardhan

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Updated on: 13-May-2026 03:00 PM

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Google and SpaceX are in talks to develop data centres in space, aiming to address the rising demand for artificial intelligence. According to The Wall Street Journal, both companies are considering placing computing infrastructure in orbit instead of expanding land-based facilities. This move comes as SpaceX prepares for a potential $1.75 trillion initial public offering later this year.

Key Highlights

• Google and SpaceX are discussing plans for data centres in space to support AI growth.
• SpaceX is preparing for a $1.75 trillion IPO and promotes orbital data centres as cost-effective.
• Google plans to launch prototype satellites by 2027 under Project Suncatcher.
• Experts say space-based data centres remain costly compared to Earth-based options.
• Anthropic and SpaceX recently partnered to use xAI’s Memphis data centre for AI computing.

Space-Based Data Centres Under Discussion

SpaceX is promoting the idea that orbital data centres could eventually become more cost-effective than traditional ones on Earth. Proponents argue that building data centres in space could help avoid local opposition, which often affects large land-based projects in the United States. However, experts remain divided on the feasibility of this concept. The high costs of launching satellites and constructing infrastructure in orbit make Earth-based data centres significantly more affordable at present.

​Google is not limiting its discussions to SpaceX. The company is also reportedly in talks with other rocket-launch providers. Google plans to launch prototype satellites by 2027 as part of Project Suncatcher, which was announced last year. This project aims to test new approaches to orbital computing and data processing.

AI and Space Industry Collaboration

The relationship between artificial intelligence and the space industry is growing. Last week, Anthropic partnered with SpaceX to use computing resources from xAI’s data centre in Memphis, Tennessee. This collaboration may expand to include orbital computing projects in the future.

Elon Musk, CEO of SpaceX, has been a strong supporter of space-based data centres. Google and SpaceX have a history of collaboration. In 2015, Google invested about $900 million in SpaceX, according to regulatory filings. This investment strengthened their partnership in space and technology initiatives.

Despite the interest, the practicality of space-based data centres remains uncertain. The technology and cost barriers are significant, and experts suggest that widespread adoption may take years. However, ongoing discussions and prototype projects indicate that major technology companies are actively exploring new solutions to support the future of artificial intelligence.