SpaceX seeks approval for solar-powered orbital data centers for AI
Elon Musk plans to place artificial intelligence data centers in orbit. AI has a huge energy appetite that the terrestrial power grid simply can’t meet.
Late Friday (January 30), SpaceX filed a request with the Federal Communications Commission (FCC) to launch up to “one million satellites” to host AI data centers in orbit.
These satellites could overcome the massive electricity and water costs that currently limit AI growth on Earth.
Reuters notes the satellites would act as orbital power plants, using the sun to keep AI data centers running 24/7.
The filing landed just hours after reports surfaced that SpaceX is in active discussions to merge with xAI, Musk’s artificial intelligence startup.
If these solar-powered data centers are launched into orbit, Musk will be able to outpace rivals like Google, Meta, and OpenAI.
AI in orbit strategy
Instead of fighting for land and electricity on Earth, AI infrastructure is heading to orbit to capitalize on constant solar power and natural vacuum cooling.
SpaceX’s FCC filing argues that this move would not only unlock transformative cost efficiencies but also lighten the environmental load on planetary resources.
However, this cosmic leap remains grounded in regulatory reality, as Musk must first secure FCC approval to fundamentally reshape the orbital landscape.
Reportedly, the 1-million-satellite figure is likely a strategic “over-filing” to ensure SpaceX has maximum design flexibility.
The company used this same tactic with Starlink, seeking approval for 42,000 satellites while currently operating roughly 9,600.
By requesting a massive ceiling now, Musk is securing the legal airspace needed to scale as fast as his Starship rockets can fly.
As per BBC, the satellites are expected to operate in low-Earth orbit at altitudes ranging between 500-2,000km (310-1,242 miles).
Use of Starship
SpaceX argues that its satellite fleet will be enough to meet the “billion-user” demand of the next generation of AI-driven technology.
The entire orbital data center project hinges on the radical economics of Starship.
After 11 test flights, the vehicle is expected to begin carrying operational payloads this year. It is designed to carry “millions of tons” to orbit annually.
Without Starship’s lower costs, the idea of an orbital data center is a multi-billion-dollar fantasy. With it, Musk claims space will be the “lowest-cost place to put AI” in the years to come.
In space, there are no local power grids to strain and no land-use permits to fight— only the FCC stands in the way.
SpaceX also described the project as a first step toward becoming a “Kardashev Type II civilization.” This is a theoretical milestone for a species capable of harnessing the total energy output of its star.
Critics are less convinced. Astronomers warn that a million satellites could blind Earth-based telescopes. Safety experts worry about the “Kessler Syndrome” — a chain reaction of orbital collisions that could trap humanity on Earth forever.
Musk, as usual, is unfazed. When asked about the one-million-satellite figure on X, he quipped: “Oops, did I say 1 million? I meant to say 1 billion.”
But only time will tell how this ambitious plan will unfold. Currently, no specific timeline has been disclosed.
Google’s Project Suncatcher is also exploring a similar frontier. The initiative envisions clusters of satellites equipped with Google’s custom AI chips (TPUs) to scale AI computing power. Meanwhile, Jeff Bezos is working to launch a satellite swarm to provide internet services to ground-based data centers and government agencies.