Google And SpaceX In Talks For Rocket Launch Deal To Power New Space-Based Data Centres

Orbit is fast becoming the next battleground for tech giants, as Google and SpaceX explore a partnership that could reshape how data is stored and processed beyond Earth.

Google And SpaceX Explore Launch Partnership For Space Data Centres

Talks between the two companies centre on a potential rocket-launch agreement that would support Google’s ambitions to deploy data centres in orbit.

The discussions would place the companies in an unusual position, both collaborators and future rivals, as they race to build infrastructure for space-based computing.

For SpaceX, a deal with Google could strengthen its commercial case ahead of a widely anticipated public listing this summer, which is expected to be the largest IPO on record.

Why Orbital Computing Is Drawing Attention

The concept of orbital data centres has become a central part of SpaceX’s long-term strategy, with CEO Elon Musk describing it as the company’s next major frontier.

At the same time, Google has been quietly advancing its own plans.

Under Project Suncatcher, the company aims to launch prototype satellites by 2027, working alongside Planet Labs to develop the hardware.

Speaking previously, Google CEO Sundar Pichai said:

“We’ll send tiny racks of machines and have them in satellites, test them out, and then start scaling from there. There’s no doubt to me that a decade or so away, we’ll be viewing it as a more normal way to build data centers.”

Despite the cooperation under discussion, Google is also said to be exploring options with other launch providers, suggesting it is keeping its strategy flexible.

SpaceX Builds Momentum Ahead Of IPO

Orbital computing has become a key pillar in SpaceX’s pitch to investors as it prepares to go public.

The company has already filed for approval to launch up to one million satellites to support its vision, a scale that would far exceed current deployments in low Earth orbit.

Its position as the world’s leading commercial launch provider gives it a strong advantage, with customers often weighing whether to work with SpaceX when planning satellite missions.

Google, notably, is already closely tied to the company. It holds a 6.1% stake in SpaceX and has board representation through executive Don Harrison.

AI Partnerships And Massive Compute Expansion

Recent deals highlight how SpaceX is linking its space ambitions with the growing demand for artificial intelligence infrastructure.

The company signed an agreement with Anthropic to provide computing capacity, delivering more than 300 megawatts powered by over 220,000 GPUs from Nvidia by the end of May.

Source: X

Anthropic has also expressed interest in using SpaceX’s future orbital data centres, signalling early demand for space-based AI processing.

At the corporate level, SpaceX has been reshaping its structure.

It merged with xAI in a deal valuing the combined entity at $1.25 trillion, and secured an option to acquire coding startup Cursor for $60 billion later this year.

Can Data Centres Really Work In Space

Supporters argue that moving compute infrastructure into orbit could solve major constraints on Earth, particularly land use and energy supply.

Solar-powered systems in space could bypass the power limitations that large data centres currently face.

However, the concept remains unproven.

Engineers point to challenges such as exposure to cosmic radiation, which can disrupt computing accuracy, and the difficulty of cooling hardware in space, where heat must dissipate slowly without air.

There are also concerns about the environmental impact and congestion in low Earth orbit if satellite numbers scale into the millions.

Starlink And Strategic Advantage In Orbit

SpaceX’s existing satellite network, Starlink, could play a crucial role in its orbital data ambitions.

The system already generates a significant share of the company’s revenue and could provide the connectivity backbone needed for space-based computing.

This integrated capability, launch, connectivity, and infrastructure, may be one of the key reasons Google is considering working with SpaceX despite the competitive overlap.