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

Google and SpaceX are discussing plans to place data centers in orbit. This initiative aims to leverage space as a new platform for AI computing. Although current costs are high, the move could transform future AI infrastructure.

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PublishedTuesday, May 12, 2026 at 7:30 PMMay 12, 07:30 PM

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Google and SpaceX are in talks to build data centers in orbit, pitching space as the future home for AI compute, even as costs today remain far higher than on the ground.

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.)

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

Original article excerpt