Google is discussing with SpaceX the installation of orbital data centers as part of its Suncatcher initiative

Google and SpaceX are discussing orbital data centers

*The Wall Street Journal* reports that Google and SpaceX are negotiating the creation of “near‑Earth” data centers (DCs) that will be located in low Earth orbit. The information is based on sources familiar with the deal details.

Why now?
* SpaceX is preparing for an IPO – the company plans to go public later this year at a valuation of about $1.75 trillion.
* As part of the IPO, it wants to show investors a prospect: in the coming years, space DCs could become the cheapest option for hosting computing power for AI.

Current steps by SpaceX
* Agreement with Anthropic – last week SpaceX signed an agreement to jointly use the xAI center in Memphis (Tennessee). This opens the path to future orbital DCs.
* Purchase of xAI – the company acquired the startup in February, strengthening its AI technology portfolio.

What is Google doing?
Google is also negotiating with several rocket companies. As part of Project Suncatcher, announced at the end of last year, prototypes of satellites are planned for launch by 2027.

Optimists and critics
* Elon Musk actively promotes the idea of orbital DCs, claiming that their operation will be cheaper than on‑ground ones.
* SpaceX partners believe such centers will not trigger public discontent like building traditional data centers in the U.S.

Financial aspect
According to TechCrunch:

| Type of DC | Cost estimate (including launch) | Orbital 1 GW | $42.4 billion |
| Ground analog | ~$14 billion |

Thus, orbital centers currently cost about three times more than ground ones. However, both companies expect long‑term savings and unique advantages of space deployment.