SpaceX seeks approval to build data centers in space

SpaceX has outlined a bold new direction that would bring its space launch business, satellite network, and artificial intelligence development under a single corporate strategy, according to a Space & Defense report.

The company filed with the U.S. Federal Communications Commission for approval of a constellation of up to one million satellites designed not just for connectivity but to serve as orbital data centers powered by continuous solar energy. These satellites would support large‑scale AI processing in orbit, aiming to bypass the limitations of terrestrial data centers and grids.

The filing appears to connect with ongoing discussions about a potential merger between SpaceX and Elon Musk’s AI company xAI, aligning AI model development directly with SpaceX’s infrastructure and launch capabilities. Such a move could be part of positioning the combined business ahead of a possible 2026 IPO.

SpaceX argues that orbital data centers could reduce energy and cooling constraints faced by traditional data operations and leverage solar power more efficiently in space. But the idea also raises significant regulatory and technical challenges, including how to manage orbital congestion and spectrum allocation.

The proposal highlights a blurring of boundaries between launch services, satellite infrastructure, and AI computing, and signals how far the company is willing to push the concept of in‑orbit infrastructure to support next‑generation technology demand.