Elon Musk targets 2027 for solar-powered data centers in space

Elon Musk wants to move the AI data center boom somewhere with no zoning boards. Specifically, low Earth orbit.

According to Ron Baron, CEO of Baron Capital, Musk plans to launch solar-powered data centers into orbit in 2027 and 2028. If the timeline holds, the cloud may soon be closer to space than anyone imagined.

Baron shared the details in a CNBC interview on November 6, 2026. He said SpaceX is expected to begin orbital launches in 2027, with significant deployments projected for 2028.

What SpaceX is actually trying to build

The project goes by the name “Starmind,” or AI1, according to the research findings. Both labels describe an orbital AI compute initiative run by SpaceX.

The first-generation design targets peak compute of 120-150 kW per satellite. The research findings describe the initial capability as around 120 kW, which they compare to high-end terrestrial systems.

The solar arrays are said to achieve approximately 250 W/m² efficiency. That figure matters because power is the entire point of putting a data center in orbit.

Cooling is the other selling point. Baron highlighted passive cooling as an advantage, since radiators can shed heat without the water-hungry chillers that ground facilities often need.

A million satellites and a very big FCC ask

SpaceX filed an application with the FCC in January 2026 seeking approval for up to 1 million orbital compute satellites.

No regulatory approvals tied to the orbital data center plan had been confirmed as of November 2026. No customer contracts had been confirmed either.

For now, the work appears focused on prototype development. The company is also expanding manufacturing operations in Bastrop, Texas.

Musk has not been shy about the economics. In January 2026, he predicted that space-based solar AI data centers would become the lowest-cost option within two to three years.

He has gone further still. Musk has claimed that monthly deployments of orbital computing could exceed terrestrial deployments by the end of 2028.

The ground game has not been abandoned

SpaceX is not betting everything on orbit. The company aims for 5-10 GW of terrestrial data center capacity by 2027, running alongside its space plans.

The pitch for orbit rests on problems every data center developer knows well. Baron pointed to power access, land use, and community resistance as the limits that space could sidestep.

Why the skeptics are not convinced yet

Market skepticism remains about whether orbital computing can compete economically with terrestrial alternatives in the near term. The research findings note this doubt directly.

The gap between a filing and a functioning fleet is wide. A request for 1 million satellites signals intent, not permission.

Still, the source of this latest update is worth noting. Baron Capital’s CEO has been a prominent public backer of Musk’s companies, which means his comments carry weight but also reflect a believer’s view.

What this means

The clearest milestones to watch are straightforward. Look for FCC action on the 1 million satellite application, the first prototype launches in 2027, and any signed customer contracts.

Also watch the terrestrial side. Progress toward the 5-10 GW target by 2027 will show whether SpaceX can execute on the infrastructure it can already build.

Musk’s late-2028 claim gives everyone a clear scorecard. Either monthly orbital compute deployments overtake ground facilities by then, or the forecast joins the long list of timelines that aged in public.

Until approvals and contracts show up, orbital data centers remain a plan with a launch date rather than a business with revenue. The 2027 window is the first real test.