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

Google and SpaceX are in talks to launch orbital data centers in space, reports The Wall Street Journal, citing sources familiar with the matter.

The potential deal comes as SpaceX gears up for its $1.75 trillion IPO later this year, selling investors on the idea that data centers in space will be the cheapest place to put AI compute within the next few years. It also follows Anthropic’s deal with SpaceX last week to use computing resources from xAI’s data center in Memphis, Tennessee, with the potential to work together on orbital ones in the future. (SpaceX acquired xAI in February.)

Google is reportedly talking to other rocket-launch companies as well. The company also plans to launch prototype satellites by 2027 as part of an initiative called Project Suncatcher, announced late last year.

Elon Musk has created hype for orbital data centers, claiming they are cheaper to operate. Advocates also point out they are free from the local backlash that U.S. ground-based buildouts attract. However, as TechCrunch recently reported, today’s terrestrial data centers are much cheaper than those in orbit once satellite construction and launch costs are factored in.

Google invested $900 million in SpaceX in 2015, according to regulatory filings.

TechCrunch has reached out to Google and SpaceX for comment.