SpaceX Eyes Orbital Data Centers to Boost Valuation

Elon Musk's vision for data centers in space faces engineering and social challenges

Apr. 5, 2026 at 3:40pm by Ben Kaplan

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SpaceX has reportedly filed confidential paperwork for an IPO seeking a $1.75 trillion valuation, with CEO Elon Musk touting orbital data centers as a key part of the company's future. While the engineering and physics behind this concept are complex, the move also appears aimed at sidestepping growing opposition to new data centers on Earth.

Why it matters

Orbital data centers could provide SpaceX with a new revenue stream through its launch services, but the viability of the concept remains uncertain. The plan also highlights how tech companies are exploring unconventional solutions to address challenges like public opposition to infrastructure projects on the ground.

The details

SpaceX's plans for orbital data centers come as the company prepares for a potential $75 billion IPO. Musk has pitched the concept as a way to bypass growing resistance to new data centers in many communities. Other companies, like the Y Combinator-backed startup Starcloud, are also pursuing similar ideas. However, turning the vision into a practical, scalable reality will require significant technical breakthroughs and capital investment.

  • SpaceX has reportedly filed confidential IPO paperwork in 2026.
  • Starcloud, a startup working on orbital data centers, recently raised $170 million and achieved unicorn status.

The players

SpaceX

An American aerospace manufacturer and space transportation services company founded by Elon Musk.

Elon Musk

The CEO of SpaceX, who has touted orbital data centers as a key part of the company's future.

Starcloud

A startup that emerged from Y Combinator and is working on building a business around orbital data centers, recently raising $170 million and achieving unicorn status.

Jeff Bezos

The founder of Amazon, whose company is also pursuing satellite network projects that could support data centers in space.

Blue Origin

Jeff Bezos' aerospace company, which is developing its own satellite network that could be used for data centers in orbit.

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What they’re saying

“The engineering challenge may be less than the social challenge back here on our [planet].”

— Sean O'Kane, TechCrunch Podcast Host

“If a company is about to go [public] and they're working on data centers in space, this is something that people can have expectations about in a positive way and ignore the constraints. It feels like a company that is working on something that's not old and outdated, but signals the future.”

— Kirsten Korosec, TechCrunch Podcast Host

“Of course [Musk] wants — whether or not it works, he would eventually have to prove it — but of course he wants to send more and more satellites into space because it's more revenue for SpaceX. And that makes SpaceX look better as a public company.”

— Sean O'Kane, TechCrunch Podcast Host

What’s next

SpaceX's plans for an IPO and the development of orbital data centers will continue to be closely watched by investors and the tech industry. The company will need to demonstrate the technical and economic viability of the concept to justify its ambitious valuation targets.

The takeaway

SpaceX's vision for data centers in space highlights how tech companies are exploring unconventional solutions to address challenges like public opposition to infrastructure projects. While the engineering and economic feasibility of orbital data centers remains uncertain, the concept signals a broader trend of the tech industry looking to space as a new frontier for innovation.