Google is also apparently interested in SpaceX data centers in space

Google and SpaceX are currently in closed-door discussions about an agreement to bring data centers into Earth orbit. This is reported by the Wall Street Journal, citing people familiar with the discussions. SpaceX founder Elon Musk is marketing the idea of orbital data centers as another business model for his company, especially considering the upcoming IPO. However, the idea is not new to Google; the data company has had corresponding plans since last year. Furthermore, Google has held shares in SpaceX for more than ten years.

In early November 2025, Google announced plans for AI data centers in orbit. As part of “Project Suncatcher,” server farms are to be relocated into space to be supplied with solar power around the clock. For the initially planned first constellation of 81 satellites, a cooperation with SpaceX is a good fit, especially since Google has been involved with Musk's company since 2015. According to mandatory filing with the US Securities and Exchange Commission, Google invested 900 million US dollars in SpaceX at the time and currently holds about 6 percent of the company.

Orbital Data Centers as an Investment Incentive?

Therefore, a cooperation with SpaceX on orbital data centers, which the two companies are now discussing according to the Wall Street Journal, should serve both companies. This is because the IPO recently applied for under seal by SpaceX is intended to generate investor interest. Musk aims for SpaceX to have the largest IPO of all time, as the company is expected to be valued at around two trillion US dollars. Although only a small portion is to be sold, even 50 or 75 billion US dollars would make it the largest IPO in history.

The cooperation between Anthropic and SpaceX also fits in with this. Initially, it concerns AI computing capacity in its large supercomputer Colossus, which has enabled enormous increases in usage limits for subscribers of the AI models Claude. However, the AI company also shows interest in orbital data centers, which are expected to offer computing capacity of several gigawatts. However, there is no timeline for this yet.

Doubts about the Profitability of Orbital Data Centers

According to Elon Musk, Earth orbit will be the cheapest location for operating AI data centers in just a few years due to solar energy. Google and Anthropic are jumping on this bandwagon, but there are also doubts. In February of this year, OpenAI CEO Sam Altman called data centers in space ridiculous, at least in the current environment. As counterarguments, he cited the current costs of space transport and the still quite high susceptibility to failure of current GPUs, which are difficult to repair in space.

A study by market researchers at Gartner from the beginning of this year comes to similar conclusions. Their analysis dissects the plans for data centers in space and calls them the “pinnacle of madness.” In addition to transport expenses, the analysts see a bottleneck in the transmission rates of data back to Earth and problems with cooling the hardware in a vacuum, so that the dissipation of the resulting heat relies on inefficient and slow alternatives. Instead of chasing the dream of orbital data centers, the players should better focus on the urgently needed expansion of infrastructure on Earth.

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