Google explores SpaceX deal for orbital data center launch

Alphabet's (NASDAQ:GOOGL) Google is in discussions with Elon Musk’s SpaceX for a rocket launch agreement to deploy a network of orbital data centers, according to people familiar with the matter.

The search giant is also reportedly speaking with other launch providers as it ramps up "Project Suncatcher," an internal initiative to move AI computing into space.

The discussions represent a rare intersection between the two tech titans, who have historically been rivals in the satellite internet sector.

Google, which previously invested $900 million in SpaceX in 2015, is seeking to launch prototype satellites by 2027 in partnership with Planet Labs PBC.

By moving data centers into orbit, Google aims to reduce the latency and cooling costs associated with terrestrial facilities while tapping into direct solar energy.

The potential partnership comes at a critical juncture for SpaceX.

The aerospace firm is preparing for a highly anticipated initial public offering, potentially as soon as the second quarter of 2026.

Analysts expect the listing to value SpaceX at roughly $1.75 trillion, which would make it one of the largest publicly traded companies in the world.