TechCrunch Equity debates Elon Musk plan for data centers in space

In short: TechCrunch’s Equity podcast discussed Elon Musk’s plan to put some AI computing in orbit, and whether the idea helps justify a very high future SpaceX valuation.

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On the April 5, 2026 episode of TechCrunch’s Equity podcast, hosts including Kirsten Korosec, Sean O’Kane, and Rebecca Bellan debated Elon Musk’s push for space-based data centers. A data center is a building full of computers that runs online services, and in this case the computers would be on satellites in space.

The conversation tied the idea to talk of a potential SpaceX IPO valuation around $1.75 trillion. The hosts also pointed to a recent SpaceX and xAI merger, which would let Musk combine rockets and AI work to build shared infrastructure, like clusters of AI computers in orbit.

TechCrunch reported that SpaceX filed plans with the US Federal Communications Commission, or FCC (the agency that regulates radio and satellite communications), in early February 2026 for a “million-satellite” network described as a data center system. The filing was accepted on February 19, with public comments scheduled. FCC Chairman Brendan Carr publicly shared the plans, which the podcast suggested could signal faster review amid Musk’s political ties.

Musk has argued elsewhere that space could be cheaper because solar panels produce about five times more power in orbit than on Earth. He predicted that around 2028, space could become the most economical place for AI computing.

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The Equity hosts were skeptical. They said cheaper power does not automatically make the whole operation cheaper, since equipment like GPUs (the computer chips used for AI) would be hard to repair in space. A more likely outcome, they argued, is that orbital data centers supplement Earth data centers, like adding extra warehouse space rather than moving the whole business.

Source: TechCrunch AI