SpaceX has submitted an application to the Federal Communications Commission seeking authorization for a constellation of satellites designed to power artificial intelligence data centers from orbit. The filing requests permission for up to 1 million satellites that would collect solar energy to run computing infrastructure, according to the regulatory filing posted Friday.
The FCC filing was published one day after news that SpaceX and Elon Musk’s xAI have been in discussions about a potential merger ahead of a planned public offering later this year. The documentation suggests that a combined arrangement could lend momentum to SpaceX’s strategy of placing data-center capacity in space as Musk competes with major technology firms in the escalating AI sector.
Data centers form the physical foundation of modern AI workloads and demand very large amounts of power. In describing the benefits of an orbital approach, the FCC filing states: "By directly harnessing near-constant solar power with little operating or maintenance costs, these satellites will achieve transformative cost and energy efficiency while significantly reducing the environmental impact associated with terrestrial data centers."
SpaceX would require the telecom regulator’s approval before proceeding with any deployment under the proposal. The filing also acknowledges industry realities about proposed fleet sizes: while the request covers as many as 1 million satellites, the company noted that operators frequently seek authorization for quantities larger than they ultimately place into orbit in order to preserve design flexibility.
The filing points to a recent precedent from SpaceX itself, which previously requested approval for 42,000 Starlink satellites prior to rolling out that system. The broader satellite industry currently counts about 15,000 satellites in orbit overall, while SpaceX’s active network today consists of roughly 9,500 satellites.
Central to the proposal’s feasibility is an anticipated decrease in launch costs tied to the Starship program. The filing argues that a shift to fully reusable launch vehicles will enable mass deployment at rates that make large-scale on-orbit processing competitive with terrestrial buildouts. As the filing puts it: "Fortunately, the development of fully reusable launch vehicles like Starship that can deploy millions of tons of mass per year to orbit when launching at rate, means on-orbit processing capacity can reach unprecedented scale and speed compared to terrestrial buildouts, with significantly reduced environmental impact," SpaceX said.
Starship has undergone 11 test launches since 2023. The company expects the rocket - a critical element for expanding Starlink with higher-capability satellites - to place its first payloads into orbit this year, according to the filing.
Key points
- SpaceX seeks FCC authorization for a constellation of up to 1 million solar-powered satellites intended to host AI data-center capacity in orbit. - Sectors affected: aerospace, cloud infrastructure, AI compute.
- The filing follows reports of merger discussions between SpaceX and xAI ahead of a planned initial public offering this year, a move that could accelerate on-orbit data-center plans. - Sectors affected: capital markets, technology.
- The plan relies on anticipated cost reductions from the Starship reusable rocket program to make large-scale orbital deployments economically viable. - Sectors affected: launch services, satellite manufacturing.
Risks and uncertainties
- Regulatory approval is required - Musk would need the FCC’s sign-off before advancing the program, creating regulatory uncertainty for telecommunications and aerospace stakeholders.
- Actual deployment numbers are uncertain - while the filing requests authorization for as many as 1 million satellites, the document acknowledges operators sometimes seek approvals for far larger fleets than they ultimately launch, underscoring execution risk for satellite operators and manufacturers.
- The concept depends on Starship meeting cost and reliability targets - the proposal explicitly ties feasibility to reduced launch costs from fully reusable launch vehicles; Starship has had 11 test launches since 2023 and is expected to put its first payloads into orbit this year, making launch program performance a material uncertainty for investors and supply-chain participants.
The filing frames orbital data centers as a route to lower operating costs and reduced environmental impact compared with terrestrial facilities, attributing those potential benefits to near-constant solar energy and lower maintenance requirements in space. It also stresses the scale advantages that, in SpaceX’s view, reusable high-capacity launch vehicles could deliver.
At present, the satellite industry has far fewer spacecraft in orbit than the quantity requested in the filing, and the outcome will hinge on regulatory decisions and the technical and economic progress of the Starship program. Those dynamics will be watched closely by companies and investors involved in aerospace, cloud computing and AI infrastructure.