Elon Musk’s SpaceX has filed a sweeping proposal with the Federal Communications Commission seeking approval to deploy what could become the most ambitious satellite system ever conceived: a vast constellation of solar-powered orbital data centers designed to support artificial intelligence workloads.

In a filing, the company outlined plans to launch as many as one million satellites into low Earth orbit, positioning them as a distributed computing network capable of handling the surging demand for AI processing. The satellites would operate at altitudes between roughly 500 and 2,000 kilometers, in orbits selected to provide near-continuous exposure to sunlight.

The proposal reflects a growing strain on earth-based data centers, which require enormous amounts of electricity and water to power and cool AI systems. SpaceX argues that space-based infrastructure could offer a fundamentally different cost and energy setup by relying on solar power and machine cooling in the vacuum of space. In its filing, the company described orbital data centers as a way to dramatically reduce operating costs while lowering the environmental impact associated with land-based facilities.

Vast Scale

The scale of the request is, to be sure, unprecedented. There are currently about 15,000 active satellites in orbit, including roughly 9,500 from SpaceX’s Starlink broadband network. While the one-million-satellite figure is widely viewed as a stretch, industry observers note that satellite operators often seek approval for larger constellations than they ultimately deploy in order to preserve flexibility as designs evolve. SpaceX followed a similar approach when it initially sought authorization for tens of thousands of Starlink satellites.

The proposal is likely to face intense scrutiny. Regulators, astronomers and rival satellite operators have already raised concerns about congestion in low Earth orbit, collision risks, and interference with scientific observations. Critics have also pointed out that the accumulation of space debris could pose long-term hazards to both spacecraft and ground-based populations.

SpaceX maintains that the new satellites would be carefully spaced and managed, minimizing the risk of collisions. Elon Musk responded to early coverage of the filing with an understated comment on social media, saying the company would “start small and work our way up.”

Prepping for an IPO

Central to the plan is SpaceX’s Starship rocket, its fully reusable launch vehicle that remains in development. The company argues that Starship’s projected ability to deliver massive payloads to orbit at far lower cost than conventional rockets makes large-scale orbital computing economically feasible. Starship has completed a series of test flights since 2023, and Musk has said he expects the vehicle to begin deploying operational payloads this year.

The filing also arrives amid broader strategic shifts within Musk’s business empire. SpaceX is preparing for a potential public offering, and reports indicate the company is exploring a merger with Musk’s AI startup, xAI. Such a move could align satellite manufacturing, launch capacity and AI development under a single corporate umbrella, while strengthening cash flow for capital-intensive projects like orbital data centers.

A Larger Vision?

Beyond near-term commercial considerations, the filing hints at a far longer-term vision. SpaceX framed the project as an early step toward a civilization capable of harnessing a significant fraction of the sun’s energy, a description that reflects Musk’s tendency to link near-term engineering projects with expansive, almost civilizational ambitions.

Whether the FCC ultimately grants approval remains an open question. The agency has previously authorized large Starlink expansions while stopping short of approving SpaceX’s most aggressive requests. A constellation of orbital data centers on the scale proposed would likely trigger one of the most challenging regulatory debates in the history of commercial spaceflight.