• Google and SpaceX in talks to launch orbital data centers in space
• Potential projects aim to shift AI computing capacity into orbit

Google and SpaceX are holding discussions to launch data centers operating in Earth’s orbit, according to a Wall Street Journal report citing people familiar with the matter.

The move comes as SpaceX accelerates plans for a potential IPO valued at around $1.75 trillion.

The company is promoting the idea that space-based data centers could become the lowest-cost option for artificial intelligence computing within the next few years.

The discussions also come amid Anthropic’s expanding reliance on advanced computing resources, following its engagement with xAI to use data center infrastructure in Memphis, with possible future collaboration on orbital systems.

Google previously announced a research initiative called “Project Suncatcher,” aimed at launching experimental satellites starting in 2027 as part of its efforts to develop space-based computing solutions.

Elon Musk has argued that orbital data centers could be cheaper and more efficient, while critics say the real cost of building and launching space infrastructure remains significantly higher than terrestrial alternatives.

Regulatory filings indicate that Google invested $900 million in SpaceX in 2015, underscoring a long history of collaboration between the two companies.