SpaceX-xAI Orbital Data Center Plan Eyes 2028 Market Shift with NASDAQ:SPX and NASDAQ:XAIC

SpaceX has moved beyond concept with a formal orbital AI data center initiative, filing FCC plans in January for a constellation of satellites to host compute clusters. The proposal, accepted for public comment and shared by FCC Chairman Brendan Carr, seeks a regulatory path to operationalize the venture. The plan follows the announced merger of SpaceX and xAI, effective February 1, 2026, creating a consolidated entity likely to pursue an IPO within months. Elon Musk argued during a recent podcast that space-based solar power and the easier scalability of orbit make AI computing more economical, with 2028 as a likely tipping point for the most economically compelling location of AI compute to shift to space. Global ground data center capacity is projected at 200 GW by 2030, valued at roughly $1 trillion, while Musk forecast annual space AI outlays to surpass cumulative Earth-based capacity within five years. The integration of SpaceX’s launch capabilities with xAI’s AI compute needs positions the venture to benefit from ongoing data center spending and the pending IPO.