Google and SpaceX in talks to launch orbital data centers

Google and SpaceX are reportedly in discussions to deploy data centers in orbit, according to The Wall Street Journal. The potential deal aligns with SpaceX's upcoming $1.75 trillion IPO, which pitches orbital data centers as the most cost-effective location for AI compute within years. This follows SpaceX's recent agreement with Anthropic to use computing resources from xAI's Memphis data center, with future orbital collaboration possible after SpaceX acquired xAI in February. Google is also in talks with other rocket-launch companies and plans to launch prototype satellites by 2027 under Project Suncatcher, announced late last year. Elon Musk has promoted orbital data centers as cheaper and free from local opposition faced by ground-based facilities. However, TechCrunch notes that current terrestrial data centers remain significantly cheaper when satellite construction and launch costs are included. Google invested $900 million in SpaceX in 2015.