Google and SpaceX are in talks to launch an orbital data center in space, the Wall Street Journal reported, citing sources familiar with the matter.
The potential deal comes as SpaceX prepares for a $1.75 trillion IPO later this year, pitching investors on the idea that data centers in space will become the cheapest place to put AI computing in the next few years. There is also the possibility of collaboration in orbit in the future, following last week’s agreement between Anthropic and SpaceX to use computing resources at xAI’s data center in Memphis, Tennessee. (SpaceX acquired xAI in February.)
Google is also reportedly in talks with other rocket launch companies. The company also plans to launch a prototype satellite by 2027 as part of an initiative announced late last year called Project Suncatcher.
Elon Musk created the hype for orbiting data centers by claiming that they are cheaper to operate. Supporters also point out that they are free from the local backlash that an increased U.S. ground base would cause. However, as TechCrunch recently reported, today’s terrestrial data centers are much cheaper than their orbital counterparts when you factor in the cost of building and launching a satellite.
Google invested $900 million in SpaceX in 2015, according to regulatory filings.
TechCrunch has reached out to Google and SpaceX for comment.
