Google is negotiating with SpaceX over a contract to launch rockets and launch orbital data centers into space, the Wall Street Journal reported, citing sources.
This technology (which has not yet been implemented) formed the basis of SpaceX’s pitch to investors ahead of the company’s planned stock market listing this summer. SpaceX CEO Elon Musk described the move as a “new frontier” for his company.
Google, in turn, announced last year plans to launch prototype satellites by 2027 as part of the Suncatcher project. “We will send small computing modules on satellites, test them and then start scaling up,” said Sundar Pichai, the company’s CEO.
According to one WSJ source, Google is also discussing potential deals with other rocket launchers.
Many in the industry see orbital computing as a solution to the problems inherent in terrestrial data centers, which require large space and significant energy costs. Orbiting data centers are supposed to be powered by solar panels, eliminating the energy constraints that characterize infrastructure on Earth.
The Wall Street Journal indicates that if Google and SpaceX agree to a deal, they will become partners in the orbital data center industry, an area in which the two companies are preparing to compete.
The Wall Street Journal reports that Google was an early investor in SpaceX and owns 6.1% of the company. Google CEO Don Harrison sits on SpaceX’s board of directors. SpaceX did not respond to a request for comment.
SpaceX has filed for an IPO in the spring of 2026, which is expected to be the largest in history. The company could seek a valuation of more than $1.75 trillion and raise as much as $75 billion in an IPO, a source at Bloomberg estimates. Meanwhile, SpaceX CEO Elon Musk has begun a trial with leaders of OpenAI, the developer of ChatGPT. Musk accuses CEO Sam Altman and President Greg Brockman of turning OpenAI into a commercial entity and thus defrauding him.