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techcrunch ai · May 12, 2026

Google and SpaceX explore orbital AI data centers

google and spacex are discussing launching orbital data centers to power future ai compute, citing cost and land use advantages.

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google and spacex are negotiating to place data centers in orbit, based on the premise that space will become the most cost-effective venue for ai processing. spacex is reportedly pitching this narrative to investors ahead of a planned $1.75 trillion ipo, leveraging a recent partnership with anthropic to access xai's facilities. google is simultaneously engaging other launch providers and developing project suncatcher, with a goal of deploying prototype satellites by 2027. while proponents argue orbital centers avoid terrestrial opposition, critics maintain that current launch and hardware costs make them significantly more expensive than earth-based options.

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