SpaceX is preparing to build a large-scale data center to diversify its computing capacity, says a report from The Information. As part of its IPO, the launch services provider marketed itself as a data center company with the capability to build computational facilities in space. The firm has also shared plans for its 'AI satellite' called the AI1. The spacecraft is capable of delivering 150 kilowatts in peak compute payload, and it will be manufactured at the recently announced Gigasat facility in Texas.
SpaceX Reportedly Looking To Expand Terrestrial Compute As It Prepares For Space-Based AI Computing Infrastructure
While SpaceX initially focused on rockets and satellite internet, the firm's purchase of Elon Musk's artificial intelligence startup xAI in February meant that it was now a key operator in the AI software industry. SpaceXAI, as the new entity is now called, operates its Colossus data centers in Tennessee and has access to hundreds of thousands of NVIDIA's latest AI GPUs. T
he firm has also entered into agreements with Anthropic, Google and Reflection AI to provide them with computing capacity. The agreement with Google lets the firm earn $920 million a month to provide access to 110,000 through 2029, while the deal with Anthropic allows the lab to access the entire Colossus 1 facility.
Now, a report from The Information suggests that SpaceXAI is interested in expanding its data center capacity. According to the details, the firm intends to build another data center facility in Texas, where SpaceX is headquartered. As part of these efforts, the artificial intelligence company has explored several sites and is considering building multiple sites from the ground up. Through these activities, SpaceXAI aims to build facilities that match or exceed the scale of its presence in Tennessee.
The latest reports come as SpaceX has struggled on the stock market after its initial public offering earlier this year. One of the firm's biggest supporters, investment bank Morgan Stanley, argued in a fresh report that its compute cost in orbit can sit at $6.5 per Watt in 2031 and be lower than the $6.8 per Watt of terrestrial data centers based on NVIDIA's Blackwell AI chips.
As it continues to test the Starship Super Heavy lift rocket, SpaceX has big plans for data centers in space. The firm has requested the Federal Communications Commission (FCC) to allow it to launch one million satellites with orbital computing capacity in order to harness the Sun's power and cater to AI's intensive computational needs.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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