Elon Musk Lays Groundwork For Space-Based AI Infrastructure

The United States Federal Communications Commission (FCC) has opened a public consultation on SpaceX’s proposal to deploy what it describes as orbital data centres, a move that comes a few days after the company acquired artificial intelligence firm xAI as part of a broader push to integrate space, connectivity and AI infrastructure.

In a public notice released on February 4, 2026, the FCC’s Space Bureau said it had accepted for filing an application by Space Exploration Holdings, LLC (SpaceX) for a new non-geostationary orbit (NGSO) satellite system of up to one million satellites. The proposed network, referred to as the “SpaceX Orbital Data Center” system, would operate as large-scale computing infrastructure in orbit.

The application follows SpaceX’s acquisition of xAI, bringing together Elon Musk–backed ventures spanning rocket launch, satellite communications, artificial intelligence research and global connectivity. The consolidation is aimed at building a vertically integrated technology platform capable of supporting what the company describes as space-based computing at unprecedented scale.

According to SpaceX, advances in artificial intelligence are increasingly constrained by the limits of terrestrial data centres, which require vast amounts of electricity and cooling. The company argues that global power demand for AI systems cannot be sustainably met on Earth without placing growing strain on communities, power grids and the environment. As a result, SpaceX has been advancing the concept of orbital data centres powered by near-continuous solar energy.

In its FCC filing, SpaceX is seeking authorisation to launch and operate satellites at altitudes ranging from about 500 kilometres to 2,000 kilometres, across multiple orbital shells. The satellites would rely primarily on high-bandwidth optical inter-satellite links to route data within the network and transmit traffic to authorised ground stations, including integration with existing Starlink constellations.

The FCC noted that SpaceX has requested several waivers from current rules, including exemptions related to application processing rounds, deployment milestones, surety bond requirements and the level of technical detail required at this stage of the process.

The Space Bureau said it is seeking public comment on both the application and the associated waiver requests. Interested parties have until March 6, 2026, to submit comments or petitions, with responses due by March 16 and replies by March 23.

SpaceX has positioned Starship, its next-generation heavy-lift launch vehicle, as central to the strategy. The company says Starship will begin deploying more powerful Starlink satellites this year and could eventually support the launch of large-scale AI satellite constellations. SpaceX estimates that, over time, space-based computing could become the lowest-cost source of AI compute, accelerating research, innovation and global connectivity.

If approved, the proposal would mark a significant expansion of the role of satellite systems, extending them beyond communications into large-scale data processing and artificial intelligence infrastructure in orbit.