Google and SpaceX are reportedly in talks to launch data centers into orbit, according to TechCrunch, citing The Wall Street Journal. The potential deal comes as SpaceX prepares for a possible $1.75 trillion IPO later this year and positions orbital AI compute as a future growth area.

Google is also said to be speaking with other rocket-launch companies and plans to launch prototype satellites by 2027 under Project Suncatcher. The report follows Anthropic’s recent agreement with SpaceX to use computing resources from xAI’s data center in Memphis, Tennessee, with potential cooperation on orbital infrastructure later.

TechCrunch notes that orbital data centers could reduce pressure from land use, power access and local opposition facing ground-based facilities. However, launch and satellite construction costs remain a key barrier. Google previously invested $900 million in SpaceX in 2015.

Source: techcrunch.com