On May 12, 2026, The Wall Street Journal reported that Google and SpaceX are in discussions to deploy orbital data centers in space, citing sources familiar with the matter.
The potential collaboration comes as SpaceX prepares for its $1.75 trillion initial public offering (IPO) later this year, where it is pitching orbital data centers as the most cost-effective location for AI computing in the coming years. Last week, Anthropic announced a deal with SpaceX to utilize computing resources from xAI’s Memphis, Tennessee data center, with plans to explore future orbital data center partnerships; SpaceX acquired xAI in February 2026.
Google is also reportedly in talks with other rocket-launch companies. Additionally, the firm plans to launch prototype satellites by 2027 as part of Project Suncatcher, an initiative announced late last year.
Elon Musk has promoted orbital data centers as cheaper to operate, and advocates note they avoid local backlash associated with U.S. ground-based data center construction. However, recent TechCrunch analysis shows current terrestrial data centers are more cost-effective once satellite construction and launch expenses are accounted for.
Regulatory filings indicate Google invested $900 million in SpaceX in 2015. TechCrunch has reached out to both Google and SpaceX for official comment.
