Report: Google and SpaceX in talks to put data centers into orbit
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- Google is in talks with SpaceX to launch orbital data centers, per WSJ.
- SpaceX is gearing up for a $1.75 trillion IPO later this year, selling investors on the idea that orbital data centers will be the cheapest AI compute venue.
- Anthropic signed a deal with SpaceX to use xAI’s Memphis data center, with potential future orbital collaboration; SpaceX acquired xAI in February.
- Google plans to launch prototype satellites by 2027 under Project Suncatcher and is also speaking with other launch providers.
- TechCrunch notes that terrestrial data centers remain cheaper than orbital when accounting for satellite construction and launch costs.
Why it matters: Google secures a low‑cost, backlash‑free compute platform for its AI services, while SpaceX’s $1.75 trillion IPO gains momentum from the orbital‑data‑center pitch; TechCrunch’s cost analysis suggests the promised savings won’t materialize, tempering investor enthusiasm.
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