Google in Advanced Talks with SpaceX to Launch AI Data Centres Into Orbit

Google is in advanced discussions with SpaceX to launch data centres into Earth orbit, according to the Wall Street Journal. SpaceX is positioning orbital infrastructure as the lowest-cost option for AI computing in the coming years, ahead of its planned IPO later in 2026 — expected to target a valuation of around $1.75 trillion.

The talks build on Google's Project Suncatcher, which aims to deploy prototype AI satellites by 2027, and on SpaceX's existing deal with Anthropic to utilise its Memphis data centre. Elon Musk has publicly championed orbital data centres as cheaper to run than land-based alternatives and immune to the land-use and regulatory hurdles that have stalled many terrestrial AI infrastructure projects.

The potential deal signals a radical rethinking of AI infrastructure strategy as hyperscalers like Google, Microsoft, and Amazon grapple with power supply constraints, limited land availability, and growing community opposition to large terrestrial data centre builds. Orbital infrastructure could bypass these hurdles entirely — and open a new frontier for the global AI compute race.