China plans to outdo SpaceX by building a powerful AI‑centric data centre in orbit within five years.

China is preparing “space” data centers for AI over the next five years

State broadcaster CCTV reported that China plans to build a network of cloud data‑processing centers (DCs) in low Earth orbit within the next five years. The project is being carried out by CASC – the China Aerospace Science and Technology Corporation.

What exactly is being built

- Gigawatt‑class digital infrastructure: Within the specified timeframe, “build a space‑based digital intelligent infrastructure of gigawatt class.”

- Integration of cloud, edge, and terminals: The new DCs will combine computing power, storage capacity, and data‑transfer bandwidth.

- Data processing in orbit: The system will allow data received from Earth to be processed directly in orbit.

Comparison with SpaceX’s plans

Elon Musk, CEO of SpaceX, has also announced the launch of AI satellite‑DCs powered by solar energy. He said:

> “Creating DCs on solar power in space is an obvious solution… Space is the most accessible place for deploying AI, and it will become a reality within two to three years.”
>
> “Solar panels in orbit provide five times more energy than those on Earth.”

SpaceX plans to use IPO proceeds (approximately $25 billion) to develop these orbital DCs.

China’s strategic objectives

- Shift the energy‑intensive part of AI processing into space using gigawatt‑class solar power stations.
- Create an industrial “space cloud” by 2030 – a key item in the country’s Fifteenth Five‑Year Economic Development Plan.
- Develop suborbital and orbital space tourism over the next five years.

Current challenges

The main hurdle for Beijing is the lack of a fully reliable reusable rocket, which is needed to reduce launch costs. Nevertheless, China already conducted a record 93 launches last year thanks to the growth of commercial space startups.

Thus, China’s initiative to create orbital data centers appears ambitious and competitive in light of similar plans from SpaceX.