SpaceX and Google in talks to launch orbital data centers ahead of historic SpaceX IPO

SpaceX and Google pursue orbital data centers ahead of record IPO

SpaceX and Google are in talks for a rocket launch deal that would put orbital data centers in space. The partnership would mark a significant validation of space-based computing as SpaceX prepares for what is expected to be the largest IPO of all time, scheduled for this summer.

Google announced its own orbital data center ambitions last year through Project Suncatcher, a moonshot initiative to launch prototype satellites by 2027 in partnership with Planet Labs. The approach involves sending small racks of machines to test in satellites before scaling. Sundar Pichai, Google's CEO, frames the timeline cautiously: orbital data centers will likely be viewed as "a more normal way to build data centers" within roughly a decade.

The rationale is straightforward. Space-based data centers sidestep the land and power constraints that plague terrestrial facilities. Solar panels in orbit eliminate the need for grid power—one of the major ecological and logistical bottlenecks for ground-based infrastructure. But the engineering barriers are substantial. Thermal management in orbit requires specialized components: deployable radiators that unfold to shed heat, phase change materials that absorb thermal energy by changing state from solid to liquid, and thermal louvers that open and close to regulate temperature. Data centers in sun-synchronous orbit (roughly 400 miles altitude) stay perpetually in sunlight, avoiding the power loss that occurs when earthbound satellites rotate into shadow.

The capital and deal-making puzzle

SpaceX's orbital ambitions have already attracted major commitments. Last week the company announced a deal to sell computing resources to Anthropic, which expressed interest in collaborating on orbital data centers. The company filed a federal application to launch up to one million satellites for its data center operations—a significant escalation from the roughly 10,000 Starlink satellites currently in orbit and the approximately 100,000 satellites it is currently approved to deploy.

Google holds about 1% of SpaceX and was an early investor in the company. The ownership stake means Google has direct financial exposure to the success of SpaceX's broader platform, not just the data center venture.

The deal-making also reveals cross-portfolio concentration at the top of tech. OpenAI's startup fund was an early investor in Cursor's seed round ($8 million), which means OpenAI has meaningful exposure to SpaceX ahead of its IPO—effectively making SpaceX an OpenAI-backed company on its public market debut, an arrangement that accumulated during the OpenAI antitrust litigation.

Blue Origin is also pursuing orbital data center capability, creating a potential opening for Amazon to consolidate space computing and launch services under a single partner.