SpaceX is moving ahead with building space-based data centres as the AI era takes hold.

On Jan. 31, U.S. time, tech outlet The Verge reported that SpaceX submitted a plan to the Federal Communications Commission to deploy 1 million solar-powered data centres in low Earth orbit. It is part of a strategy to overcome limits of existing ground-based data centres and expand AI cloud infrastructure into space.

Elon Musk has already pushed to build space-based data centres with AI company xAI. SpaceX stressed the plan could sharply cut data processing costs and reduce environmental burdens. The space data centres are designed to run on solar power, address cooling issues and enable ultra-fast data transmission through laser communications. They are assessed as more efficient and sustainable than existing ground-based data centres.

But the plan to place 1 million satellites in space comes with technical and environmental challenges. FCC approval is also uncertain. SpaceX recently won approval to launch an additional 7,500 Starlink satellites, but approval has been put on hold for another 14,988 satellites. About 15,000 satellites currently orbit Earth, and the increase has been cited as raising risks from space debris and collisions.

The U.S. National Aeronautics and Space Administration and the Federal Aviation Administration have already pointed out that SpaceX's Starlink satellites are worsening the space debris problem. If this project is realised, it is likely to sharply increase the number of satellites in Earth orbit.

Even so, SpaceX is accelerating efforts to build space infrastructure for the AI era. SpaceX posted net profit of $530 million in the fourth quarter of 2025, showing a strong presence in the AI and cloud markets. In an interview with Bloomberg, Musk said, "AI infrastructure will expand beyond Earth into space," suggesting the paradigm for data centres may change in the future.