Report: Google and SpaceX in talks to put data centers into orbit

In a groundbreaking move, Google and SpaceX are reportedly in discussions to establish data centers in orbit, according to sources cited by The Wall Street Journal. This potential partnership is emerging as SpaceX prepares for its monumental $1.75 trillion IPO later this year, enticing investors with the prospect that space-based data centers will become the most cost-effective solution for AI computing in the near future. This conversation follows a recent collaboration between SpaceX and Anthropic, wherein they will utilize computing resources from xAI’s facility in Memphis, Tennessee. With SpaceX having acquired xAI earlier this year, the groundwork is being laid for further advancements in orbital computing. Additionally, Google is reportedly in talks with various rocket-launch companies, signaling a broader interest in space technology. As part of its ambitious Project Suncatcher, Google plans to launch prototype satellites by 2027, a project that was unveiled late last year. Elon Musk has been vocal about the advantages of orbital data centers, claiming they offer lower operational costs and are free from the local opposition that often plagues ground-based facilities. However, experts note that current terrestrial data centers tend to be more economical than their orbital counterparts when all costs, including satellite construction and launch expenses, are considered. Google’s financial relationship with SpaceX dates back to 2015, when it invested $900 million, according to regulatory documents. TechCrunch has reached out to both companies for further insights on this evolving story.