Elon Musk is getting serious about orbital data centers

image via TechCrunch

February 5, 2026, 6:50 PM

• •SpaceX and xAI merger signals a joint infrastructure project.
• •FCC accepted filing for orbital AI data clusters.
• •Musk claims space-based solar power makes AI computing cheaper.
• •Concerns raised about the complete economic viability of orbiting data centers.
• •Musk forecasts a shift towards space-based AI by 2028.

Elon Musk is seriously pursuing the idea of orbital AI data centers, merging SpaceX and xAI to facilitate the project. He anticipates that space will become the most economically viable location for AI computing within the next few years, citing the higher efficiency of solar power in space. Musk predicts that in five years, more AI will be operated in space annually than the total on Earth, despite some skepticism about the economics. With a new SpaceX-xAI conglomerate preparing for an IPO, the concept of orbital data centers will likely be a major focus.

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