Google and SpaceX are reportedly discussing a partnership that could lead to the development of data centers placed in orbit around Earth.

According to reports from The Wall Street Journal, the discussions are part of a broader effort to support the rapidly increasing demand for artificial intelligence computing power.

The reported talks come as SpaceX prepares for a massive public offering later this year, with company valuations estimated at approximately $1.75 trillion.

Investors are said to be hearing ambitious proposals suggesting that orbital data centers could eventually become a cheaper and more efficient option for AI computing than traditional facilities built on Earth.

Google is also reportedly in discussions with additional rocket launch companies as part of a separate initiative known as Project Suncatcher.

The project is expected to involve prototype satellite launches by 2027. The company’s long standing relationship with SpaceX includes a previous investment of $900 million made in 2015.

Supporters of orbital data centers argue that space based infrastructure could avoid many of the environmental concerns and local opposition often faced by ground based facilities.

Traditional data centers require enormous amounts of electricity and water, frequently triggering public criticism over energy consumption and environmental impact.

However, analysts remain skeptical about the financial practicality of the idea. Reports from technology researchers indicate that launching and maintaining computing infrastructure in space would currently be far more expensive than operating terrestrial data centers once satellite manufacturing and launch costs are included.

The growing interest in orbital computing reflects the broader race among technology companies to secure enough infrastructure for the next generation of artificial intelligence systems.

While the concept remains largely experimental, discussions between major players like Google and SpaceX suggest that space based computing may become an increasingly serious area of technological investment in the coming years.

Source: TechCrunch