Elon Musk Combined SpaceX And xAI To Build Orbital Data Centers
Elon Musk Combined SpaceX And xAI To Build Orbital Data Centers
The Orbital Data Center Revolution SpaceX + xAI And The Future Of AI In a move dubbed the "tech deal of the century," Elon Musk announced in February 2026 the merger of SpaceX and XAI into a single entity with a market capitalization exceeding $1.25 trillion, creating the largest technology conglomerate in history that combines access to space with unprecedented data processing speeds. The core objective of this merger is not simply to expand operations, but to relocate artificial intelligence data centers to outer space itself, where unique conditions unavailable on Earth can be exploited. The philosophy behind this move rests on a simple environmental fact: temperatures in low Earth orbit can plummet to -270 degrees Celsius, allowing for natural cooling of massive servers without the need for enormous cooling plants that consume the water and electricity of entire cities. Furthermore, solar power is continuously and uninterrupted in space, eliminating reliance on strained …