Inside SpaceX’s ambitious plan to put AI data centers into orbit

Grok and Buzz Lightyear may have more in common than you think.

SpaceX has filed a new request with the Federal Communications Commission to go to infinity and beyond launch up to 1 million solar-powered satellites designed to function as AI data centers in low-Earth orbit.

Reach for the stars

The filing proposes connecting a massive constellation of satellites via lasers, creating a network of solar-powered data centers in space meant to keep up with the AI industry’s explosive growth.

SpaceX argues the approach could sidestep some of the biggest headaches facing data centers on Earth: massive electricity demand, water usage for cooling, and growing pushback from local communities.

• The plan represents a massive bet that SpaceX can reduce the costs of launching Starship—its next-gen reusable rocket—for a cost-effective way of deploying millions of tons of mass per year to orbit.
• SpaceX describes its ambitious project as a step towards a “Kardashev II-level civilization,” or sci-fi shorthand for a society capable of harnessing far more energy than we do today.

Reality check: While it’s unlikely SpaceX will put 1 million satellites in space—where only 15,000 satellites exist currently—operators typically request FCC approval for higher numbers of satellites than they intend to deploy. This strategy buys them design flexibility and serves a starting point for negotiations should the FCC want to reduce that figure.

In other major SpaceX news: Yesterday afternoon, CEO Elon Musk announced plans to combine the rocket maker with his artificial intelligence startup, xAI. The merged entity is gearing up for a massive IPO as soon as June, and is reportedly expected to seek a valuation of $1.25 trillion.