Google Agrees to $920 Million Monthly Data Center Deal With SpaceX

Richard Janvrin
By: Richard Janvrin
Industry
Google Agrees to $920 Million Monthly Data Center Deal With SpaceX

Photo by Wikimedia Commons, CC BY 2.0

Key Takeaways

  • Google will pay SpaceX $920 million monthly for computing capacity through 2029
  • The agreement includes access to at least 110,000 Nvidia chips
  • SpaceX continues expanding with major data center and AI partnerships

Ahead of the company's initial public offering, SpaceX and Google have agreed to a deal in which Google will rent data-center capacity from the rocket company, according to The Wall Street Journal. 

With this deal, Google will pay SpaceX an eye-popping $920 million a month from October 2026 through June 2029. The deal also includes a computing capacity of at least 110,000 Nvidia chips, per securities filings. 

The Journal says that this deal has a "ramp-up over the summer," and if, by October, Google doesn't have the chips SpaceX promised, they can cancel the deal. Also, either party can cancel the deal at the start of 2027 with 90 days' notice. 

This is the second deal SpaceX has made to rent out computing capacity to a competitor. SpaceX is going public on June 12, and the Journal says that the public offering values the company at $1.77 trillion. 

SpaceX Expands Beyond Rockets and Satellites

Part of the pitch to investors was that SpaceX planned to build data centers in space because costs on Earth have driven up energy bills. 

Google was an early investor in SpaceX, and a Google executive, Donald Harrison, is on their board. 

“This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected,” a Google Cloud spokesperson said.
Last month, the Journal reported that the two companies had previously discussed a deal to launch data centers into space. Google plans to launch its own "orbital data centers by 2027" as part of an initiative called "Project Suncatcher." 
Google is working with a company, Planet Labs, to build such satellites. 

AI Demand Drives New Infrastructure Partnerships

On Thursday, Elon Musk spoke at a JPMorgan event, saying he plans to make the orbital data centers run on chips from multiple companies and that they "could run Google's proprietary technology." 
Last month, Anthropic, an AI company, said it would be renting 220,000 Nvidia chips from SpaceX and was also interested in orbital data centers. 
Also ahead of the IPO, SpaceX said that Anthropic agreed to pay $1.25 billion per month for "compute capacity" in the Colossus data center. That deal runs through 2029. 
In addition to these massive deals, SpaceX's Starlink has also been mentioned as a possible in-flight WiFi for various airlines, including American Airlines. 

Richard Janvrin is a graduate of the University of New Hampshire. He started writing as a teenager before breaking into sports coverage professionally in 2015. From there, he entered the iGaming space in 2018 and has covered numerous aspects, including news, reviews, bonuses/promotions, sweepstakes casinos, legal, and more.

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