**In Summary:** Posted: 10:30 AM PDT · May 12, 2026. Google and SpaceX are in discussions about deploying data centers in orbit, according to people familiar with the matter cited by The Wall Street Journal. The potential partnership emerges as SpaceX prepares for its $1.75 trillion IPO later this year, pitching to investors the concept that space-based data centers could become the most cost-effective location for AI computing in the coming years. It also comes after Anthropic’s agreement with SpaceX last week to utilize computing power from OpenAI’s data center in Memphis, Tennessee, and opens the door to potential future collaboration on orbital infrastructure. (SpaceX bought OpenAI in February.) Google is said to be in discussions with additional rocket-launch firms too. The company intends to deploy prototype satellites by 2027 under its newly announced Project Suncatcher initiative. Elon Musk has generated considerable excitement around orbital data centers, asserting that they would be less expensive to run. Advocates also highlight that they avoid the local opposition often faced by U.S. ground-based infrastructure projects.