The U.S. Space Force has awarded SpaceX a $2.29 billion Firm-Fixed-Price Other Transaction Authority delivery order to develop the Space Data Network (SDN) Backbone, a satellite constellation designed to provide secure, high-speed global data transport for military operations.
The SDN Backbone is described as a proliferated low Earth orbit constellation that operates as an integrated network to deliver high-capacity, low-latency data transport for the Joint Force. Under the terms of the award, SpaceX is required to deliver a fully operational prototype capability by the end of 2027.
Key technical features of the planned network include an expanded optical mesh of interconnected satellites intended to provide worldwide tactical communications and broadband services. The constellation is positioned to provide both tactical communications and high-throughput backhaul with low latency.
To address the integration and architectural complexity of the program, the Space Force has established an SDN consortium that will collaborate with industrial partners. The consortium is tasked with working across multiple vendors to develop a unified network architecture and to demonstrate advanced communications capabilities. The consortium is expected to expand its roster of participants over the summer.
The SDN Backbone is intended to operate alongside the Space Development Agency's Transport Layer. In that arrangement, the Backbone will be responsible for high-throughput, low-latency data backhaul while forming part of a unified and open architecture to provide critical data transport for Department of Defense missions.
Separately, SpaceX has filed an S-1 for an initial public offering targeted for June 12, 2026. The company indicated plans to list on the Nasdaq under the ticker NASDAQ:SPCX. The proposed offering could raise up to $75 billion and is projected to value the company between $1.7 trillion and $2 trillion.
The contract and parallel procurement structures emphasize both rapid prototyping and multi-vendor coordination as the Defense Department seeks to field an integrated, high-capacity space-based data transport capability.