SpaceX Unveils Plans for Massive Orbital Data Center Satellites

Got story updates? Submit your updates here. ›

Elon Musk has unveiled plans for a $20-25 billion joint venture between Tesla, SpaceX, and xAI to build a massive chip fabrication facility called Terafab in Austin, Texas. The goal is to produce one terawatt of computing power annually - 50 times the current output of advanced chip manufacturers. This will power a constellation of up to one million satellites that will function as an orbital data center, providing cost-effective AI computing power in space.

Why it matters

Musk's vision is to extend the reach of artificial intelligence beyond Earth and into space, leveraging abundant solar power and eliminating land constraints. The project represents a foundational step towards realizing Musk's goal of an AI-powered future, with the orbital data centers potentially leading to the establishment of data centers on the moon powered by an electromagnetic mass driver.

The details

The Terafab facility will consolidate every stage of semiconductor production under one roof, addressing concerns that external chip capacity will reach its limit in the next 3-4 years. It is designed to scale to roughly 70% of the global output from Taiwan Semiconductor Manufacturing Company (TSMC). The satellites, called 'AI Sat Mini', are envisioned to be over 170 meters in length and provide 100 kilowatts of power for onboard AI processors. A key component is the 'D3' chip, specifically designed for space-based applications and optimized for high temperatures and radiation resistance.

• Musk unveiled the plans in March 2026.
• SpaceX has already filed an application with the FCC for the orbital data center constellation, requesting waivers from standard deployment deadlines.

What they’re saying

What’s next

SpaceX's application with the FCC for the orbital data center constellation is pending, and the company is requesting waivers from standard deployment deadlines.