tech
May 12, 2026
Report: Google and SpaceX in talks to put data centers into orbit
Google and SpaceX are in talks to build data centers in orbit, pitching space as the future home for AI compute, even as costs today remain far higher than on the ground.

TL;DR
- Google and SpaceX are in talks to launch orbital data centers.
- SpaceX aims to position space as the cheapest location for AI compute in the coming years.
- Google is also exploring other rocket companies and has an initiative to launch prototype satellites by 2027.
- Elon Musk has advocated for orbital data centers, citing lower operating costs and freedom from local backlash.
- Current terrestrial data centers are more cost-effective than orbital ones when launch and construction expenses are considered.