SpaceX-xAI Orbital AI Data Centers Plan to Outpace Earth by 2028

SpaceX and xAI's formal merger this week signals serious integration of Musk's space and AI initiatives, with plans to establish an orbital data center network leveraging solar power for AI operations. The FCC has accepted SpaceX's application, with a public comment period scheduled, and Chairman Brendan Carr shared the filing, indicating regulatory support. Musk argues that solar arrays in space generate about five times more power than on Earth, potentially making orbital AI cheaper. However, critics question reliability and maintenance. Musk projects orbital AI will be the most economically viable option within 30 months and predicts by 2028 AI operations in space will surpass those on Earth. By 2030, global data center capacity is expected to reach 200GW, roughly $10 billion in infrastructure investment. With SpaceX's core strength in orbital delivery and the pending IPO of the combined entity, continued data center spending could increasingly shift into space.