Report: Google and SpaceX in talks to put data centers into orbit

Disclosure: Some links in this article are affiliate links. AI Maestro may earn a commission if you make a purchase, at no…

By AI Maestro May 12, 2026 1 min read
Report: Google and SpaceX in talks to put data centers into orbit


Report: Google and SpaceX in Talks Over Space-Based Data Centers

Google and SpaceX are reportedly engaging in discussions about deploying orbital data centers. This potential collaboration comes as both companies navigate significant milestones in their respective portfolios.

SpaceX is preparing for its upcoming $1.75 trillion IPO, positioning the deployment of such facilities as a cost-effective solution for AI compute within the next few years. The move aligns with SpaceX’s recent partnership with Anthropic on an existing data center in Memphis, Tennessee.

Google has also been exploring other rocket-launch companies and is planning to launch prototype satellites by 2027 as part of its Project Suncatcher initiative announced last year.

The idea behind placing data centers in orbit is driven by the perception that these facilities would be cheaper to operate. Advocates argue this could also circumvent local opposition often faced by terrestrial builds, especially in the United States. However, recent reports from TechCrunch suggest that current costs for establishing and maintaining satellite-based operations are significantly higher than those of ground-based data centers.

Google has a history with SpaceX, having invested $900 million into the company in 2015 through regulatory filings.

TechCrunch has reached out to both Google and SpaceX for further comment on these developments.

Key Takeaways

  • Google and SpaceX are considering a partnership for orbital data centers, part of SpaceX’s IPO strategy and Google’s own initiatives.
  • The concept is driven by the belief that space-based solutions could be more cost-effective for AI compute, though current costs indicate this may not yet hold true.
  • Google’s investment in SpaceX underscores existing ties between the two companies.



Originally published at techcrunch.com. Curated by AI Maestro.

Stay ahead of AI. Get the most important stories delivered to your inbox — no spam, no noise.

Name
Scroll to Top