Google and SpaceX are in discussions to launch data centers into orbit, according to a report by The Wall Street Journal citing unnamed sources. This potential collaboration comes as SpaceX gears up for its highly anticipated $1.75 trillion IPO later this year, pitching the concept that space-based data centers could soon become the most cost-effective solution for AI computing.
SpaceX's IPO and Strategic Moves
The discussions coincide with SpaceX's recent deal to utilize computing resources from xAI’s data center in Memphis, Tennessee. SpaceX, which acquired xAI in February, is considering future collaboration on orbital data centers with Anthropic. This follows SpaceX's broader strategy to expand its offerings and justify its massive valuation.
Google's Parallel Initiatives
Meanwhile, Google is not solely focused on SpaceX for this endeavor. The tech giant is reportedly in talks with other rocket-launch companies and plans to deploy prototype satellites by 2027 through Project Suncatcher, which was announced in late 2025. Google's previous investment of $900 million in SpaceX back in 2015 underscores its long-standing interest in space-related ventures.
Orbital Data Centers: Pros and Cons
Elon Musk has been vocal about the potential advantages of orbital data centers, suggesting they could operate at lower costs and avoid the public opposition often faced by terrestrial data center projects in the U.S. However, TechCrunch has highlighted that once the expenses of constructing and launching satellites are considered, current ground-based data centers remain more economical.
Both Google and SpaceX have been contacted by TechCrunch for comments regarding these reports.
Source: https://techcrunch.com/2026/05/12/report-google-and-spacex-in-talks-to-put-data-centers-into-orbit/
