WASHINGTON — SpaceX and Google are in discussions to launch data centers into orbit, according to people familiar with the talks. The companies are exploring orbital infrastructure as a way to address the energy demands of traditional ground-based facilities.

Google launched Project Suncatcher in November 2025, an initiative that aims to put prototype satellites into orbit by 2027. One of the project's stated top goals is to achieve "data center-scale inter-satellite links."

SpaceX Chief Executive Elon Musk has said orbital data centers are the next step for the company. In February, Musk said he wants to put as many as a million satellites into orbit, forming vast, solar-powered data centers in space that he said would allow expanded use of artificial intelligence and chatbots without triggering blackouts or increasing utility bills.

"Space-based AI is obviously the only way to scale," Musk wrote. In a separate post, he wrote, "It's always sunny in space."

Earlier this year, SpaceX filed an application with the Federal Communications Commission to launch a million satellite data centers into space, according to public records. The application stated that the project would have no meaningful environmental impact. Musk merged SpaceX with his AI business earlier this year and plans an initial public offering of the combined company.

Sam Altman has said that orbital data centers are "ridiculous" for this decade. Altman's view contrasts with Musk's plans; SpaceX's FCC filing, submitted earlier this year, targets a launch program that would place satellites into orbit beginning in 2027.

According to a research paper, a single SpaceX Starship launch burns around a kiloton of liquid methane and produces as much climate pollution as a small city does in a year. Black soot emitted from rockets is long-lasting in the upper atmosphere and can cause more global warming than the same pollution on the ground.

"Soot that comes out of the tailpipe in a car normally lasts maybe a few weeks in the lower atmosphere," said Peter Howson, a researcher at Northumbria University. "But when you put it into the upper atmosphere, it could stay there for years," he added.

Water vapor emissions from rocket launches act as a potent greenhouse gas, according to the research. Around 2 million liters of water are used to protect launch pads at every launch, a process that can wash toxic dust and debris into local ecosystems.