Google and SpaceX Eye Orbital Data Centers for AI Infrastructure

Alphabet's Google is in advanced talks with SpaceX to launch solar-powered AI data centers into orbit, according to a Wall Street Journal report. The initiative, codenamed Project Suncatcher, aims to deploy two prototype satellites by early 2027 through a partnership with Earth-imaging company Planet.

SpaceX CEO Elon Musk is aggressively positioning his company to dominate space-based computing infrastructure. The move comes as Anthropic recently agreed to utilize SpaceX's Colossus 1 facility for orbital AI experiments. Market reaction was muted, with GOOGL shares dipping slightly on the news.

The potential $1.75 trillion SpaceX IPO, tentatively slated for Q2 2026, could further accelerate the space infrastructure race. Google is simultaneously negotiating with other launch providers to diversify its orbital strategy.