FCC opens review of SpaceX proposal for orbital AI data center

The Federal Communications Commission (FCC) on Wednesday opened a public review of SpaceX’s plan to establish a non-geostationary satellite system in orbit. The orbital satellite system aims to move energy-intensive AI computing into space and enable SpaceX to launch up to 1 million data-center-style satellites to train xAI models.

The FCC revealed that the proposed satellites will incorporate high-bandwidth optical inter-satellite links. The satellites will also conduct telemetry, tracking, and command (TT&C) operations. The agency is seeking comment on the application and the associated waiver request.

SpaceX seeks to deliver energy-efficient AI compute for users globally

The FCC’s review comes as SpaceX filed an application on January 30 to launch and operate the SpaceX Orbital Data Center. The firm plans to operate the system at altitudes ranging from 500 kilometers to 2,000 kilometers and in 30-degree and sun-synchronous inclinations. 

SpaceX wrote in a waiver request for the filing that its orbital data center system will enable the firm to begin delivering much-needed energy-efficient AI compute for users globally. The firm also seeks authority to operate NGSO systems in the U.S. on a non-interference, non-protection basis.

SpaceX revealed that its Orbital Data Center system will be able to reroute beams and traffic to prevent interference with other operators. The firm said the initiative will be possible through the combination of beam steering, optical links, and a flexible on-orbit network architecture.

The Orbital Data Center system also aims to connect with SpaceX’s existing Starlink constellations. The firm said the connection will enable data to be routed and processed in orbit before transmission to ground stations. 

The agency also approved a major expansion of SpaceX’s second-generation Starlink system last month, authorizing 7,500 additional satellites. The authorization doesn’t constitute the agency’s acceptance of the orbital data center application for filing approval.

The FCC stated that it has begun a formal public comment period and regulatory review window through March 6. The period is meant to allow researchers, environmental groups, and industry competitors to opine on the proposal.

Musk says global electricity demand can’t be met with terrestrial solutions

AI data centers are currently one of the largest new sources of electricity demand, driven by the surge in AI systems. The U.S. reported it used about 183 terawatt-hours of power in 2024, equivalent to Pakistan’s annual energy consumption. The U.S. expects that figure to climb as demand for AI training and usage expands.

SpaceX believes that its Orbital Data Center system brings it a step closer to becoming a Kardashev II-level civilization. Musk also revealed that harnessing a millionth of the sun’s energy would require over a million times more energy than our civilization currently uses.

SpaceX’s orbital system would mark a shift from the firm’s consumer-focused Starlink internet service and position satellites as space-based computing infrastructure. The satellites will be designed to operate beyond the power and cooling constraints of AI development on Earth.

SpaceX argued that operating its system in low Earth orbit will enable it to rely on near-constant solar power. The company also acknowledged that the initiative would help reduce dependence on water- and energy-intensive cooling systems that have disadvantaged local communities.

Elon Musk also revealed on Monday that he plans to merge his artificial intelligence startup, xAI, into SpaceX. The initiative aims to consolidate AI development and launch capabilities within a single company.

Join a premium crypto trading community free for 30 days - normally $100/mo.