Elon Musk Announces SpaceX Plans for Space-Based Data Centers Using Starlink V3 Satellites

Reviewed byNidhi Govil

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Elon Musk reveals SpaceX's intention to develop orbital data centers by scaling up Starlink V3 satellites, joining tech giants like Jeff Bezos and Eric Schmidt in pursuing space-based computing infrastructure to address AI's growing energy demands.

SpaceX Enters the Space Data Center Race

Elon Musk has announced that SpaceX will develop orbital data centers using scaled-up versions of its upcoming Starlink V3 satellites, marking the company's entry into an emerging industry that promises to revolutionize how we handle AI's growing computational demands. In a post on X, Musk stated that "simply scaling up Starlink V3 satellites, which have high speed laser links would work" and confirmed that "SpaceX will be doing this"

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Source: PC Magazine

Source: PC Magazine

This announcement positions SpaceX alongside other tech industry heavyweights pursuing space-based computing infrastructure. Amazon founder Jeff Bezos recently predicted that gigawatt-scale data centers will be built in space within 10 to 20 years, while former Google CEO Eric Schmidt acquired Relativity Space specifically for his interest in orbital data centers

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Technical Foundation: Starlink V3 Capabilities

SpaceX's proposed orbital data centers would build upon the company's next-generation Starlink V3 satellites, which represent a significant leap in space-based computing capacity. While current Starlink V2 mini satellites have a maximum downlink capacity of approximately 100 Gbps, the V3 satellites are expected to increase this capacity by a factor of 10, reaching 1 Tbps

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Source: Ars Technica

Source: Ars Technica

The V3 satellites will likely mass around 1,500 kg, requiring SpaceX's Starship vehicle for launch. SpaceX plans to deploy approximately 60 Starlink V3 satellites per Starship launch, with initial deployments potentially occurring in the first half of 2026

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. According to Caleb Henry, director of research at Quilty Space, "nothing else in the rest of the satellite industry comes close to that amount of capacity"

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Autonomous Assembly and Partnership Developments

The space data center industry is being enabled by breakthrough technologies in autonomous assembly. Rendezvous Robotics, a space construction firm that emerged from MIT, has partnered with Starcloud to develop self-assembling data center infrastructure

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Source: Tom's Hardware

Source: Tom's Hardware

The company's flagship product uses tile-based autonomous modules that can assemble themselves using electromagnets after deployment from spacecraft.

Starcloud, which is partnered with Nvidia, plans to launch an AI-equipped satellite featuring an Nvidia H100 GPU next month as a proof of concept. The company's ultimate goal is to build a 5-gigawatt data center with "super-large solar and cooling panels approximately 4 kilometers in width and length"

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. To put this scale in perspective, the International Space Station's solar arrays are only 0.005% the size of what Starcloud is planning to build.

Connectivity Solutions and Technical Challenges

One of the key technical challenges for space-based data centers is maintaining reliable connectivity as satellites orbit Earth. SpaceX has already addressed this through its high-speed laser link system, which enables Starlink satellites to transmit data at up to 200 Gbps, creating a mesh network in space

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. This infrastructure would allow customers to remotely connect to orbital data centers and run AI training workloads.

The proposed space data centers would leverage unlimited solar power and eliminate the environmental costs associated with terrestrial facilities, where opposition to energy-intensive AI infrastructure is growing. However, critics argue that the economic practicality and technical complexity of building such facilities in space remain significant hurdles

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