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Google and SpaceX in Talks to Launch AI Data Centers Into Orbit


Google and SpaceX Eye Space-Based AI Data Centers

Wed 13 May 2026 | 10:23 AM
By Ahmad El-Assasy

Tech giants aim to bypass Earth’s energy constraints by deploying solar-powered artificial intelligence infrastructure in space.

Google is reportedly in talks with Elon Musk’s SpaceX for a potential rocket-launch deal aimed at establishing a network of orbital data centers in space.

According to sources familiar with the matter cited by The Wall Street Journal, Google is developing a conceptual framework to deploy operational data centers into Earth's orbit. The initiative is part of a strategic push to expand artificial intelligence computing capabilities beyond the planet’s boundaries. Google has also reportedly initiated discussions with several other commercial space launch providers.

While neither Google nor SpaceX responded to requests for comment, industry analysts note that the partnership represents a rare collaboration between Musk and his long-time artificial intelligence rivals. The discussions come at a crucial time for SpaceX as it prepares for a highly anticipated initial public offering (IPO) scheduled for this summer, which is projected to be one of the largest market debuts in history.

Overcoming Terrestrial Energy Limits

The race to expand AI capabilities has triggered an unprecedented demand for electricity and physical infrastructure on Earth. Moving data centers into space could alleviate these terrestrial energy and infrastructure bottlenecks.

The proposed orbital data centers would rely entirely on solar power, bypassing the severe energy grid constraints that terrestrial facilities currently face and addressing major environmental concerns associated with the booming AI industry. However, severe engineering and financial hurdles remain, leaving some industry experts skeptical about the immediate viability of the technology.

Despite the skepticism, orbital computing has become a focal point of SpaceX’s pitches to investors ahead of its historic IPO. Elon Musk, who co-founded OpenAI in 2015 before falling out with other tech leaders, now finds his ventures competing directly with Google to build the underlying infrastructure for next-generation AI.

A Growing Shift to Orbital Computing

Google and SpaceX are not the only players looking toward the cosmos. Recently, AI startup Anthropic announced plans to leverage massive computing clusters operated by SpaceX in Memphis, while expressing a long-term interest in developing mega-scale space data centers.

Meanwhile, Google is independently advancing its internal research project, known as SunCatcher. The project aims to link solar-powered satellites embedded with specialized AI chips into a coordinated orbital computing network. Google plans to launch an initial prototype satellite in collaboration with Planet Labs by early 2027.

Speaking on the long-term outlook of the technology, Google CEO Sundar Pichai stated in a recent media interview: "We will send small hardware racks, place them into satellites, test them, and scale up from there. I have no doubt that a decade from now, we will look back at this as a much more mainstream way of building data centers."

Notably, Google was an early investor in SpaceX and currently holds a 6.1% stake in the aerospace firm. Google executive Don Harrison also holds a seat on the SpaceX board of directors, cementing a deep corporate relationship despite their rivalries in other technology sectors.