China Plans to Launch Space-Based AI Data Centres to Challenge SpaceX
China is set to launch space-based artificial intelligence (AI) data centres over the next five years, a move that will challenge Elon Musk’s SpaceX initiative to deploy data centres in space. According to state media, China’s primary space contractor, China Aerospace Science and Technology Corporation (CASC), has committed to constructing “gigawatt-class space digital-intelligence infrastructure.”
The five-year development plan, reported by state broadcaster CCTV, outlines plans for space data centres that will integrate cloud, edge, and terminal capabilities. The aim is to achieve “deep integration of computing power, storage capacity, and transmission bandwidth” to process data from Earth directly in space.
Competing in Space-Based AI Infrastructure
This new initiative will directly compete with SpaceX’s plans to launch its own solar-powered AI data centre satellites within the next two to three years. Musk had previously stated at the World Economic Forum in Davos that space would soon be the “lowest-cost place to put AI.” He argued that solar generation in orbit could produce up to five times more power than solar panels on Earth, making space an ideal location for data centres.
To finance the project, SpaceX plans to use funds from its anticipated $25 billion initial public offering (IPO) later this year. These orbital AI data centres are seen as a response to the growing energy constraints faced by terrestrial data centres, allowing AI processing to shift into space and ease the burden on Earth’s resources.
China’s Vision for Space-Based AI and Solar Power
Alongside its AI data centre ambitions, China’s space programme also seeks to develop a “Space Cloud” by 2030. This would involve gigawatt-class solar-powered hubs in orbit, integrating AI computing and solar power for large-scale industrial use. The initiative is a core element of China’s 15th Five Year Plan, the country’s economic development roadmap.
China’s plan also includes using space-based solar power to relieve the energy-intensive demands of AI processing, while simultaneously pursuing advancements in suborbital and orbital space tourism over the next five years. As both the U.S. and China compete for dominance in space exploration, the stakes are high, with both nations aiming to turn space into a commercially viable sector akin to civil aviation.
A Race for Space Dominance
China’s efforts in space exploration are part of a broader ambition to become a “world-leading space power” by 2045. However, one of the key challenges China faces is its inability to complete a reusable rocket test, unlike SpaceX, which has achieved significant success with its Falcon 9 reusable rocket. SpaceX’s reusable rocket technology has played a crucial role in enabling its subsidiary, Starlink, to dominate the low Earth orbit (LEO) satellite market and facilitate orbital space tourism.
While China made a record 93 space launches in 2025, demonstrating the rapid progress of its commercial spaceflight sector, the lack of reusable rocket technology remains a critical bottleneck for the country’s space ambitions. Nevertheless, China’s space programme is advancing, as evidenced by the recent inauguration of the School of Interstellar Navigation within the Chinese Academy of Sciences. This institution will help cultivate future talent in fields such as interstellar propulsion and deep space navigation, indicating China’s long-term ambitions in deep space exploration.
Looking to the Future
China’s space programme is gearing up for a significant leap in the coming decades. The next 10 to 20 years are seen as crucial for breakthroughs in deep space exploration. As Xinhua reports, “Original innovation in basic research and technological breakthroughs will reshape the pattern of deep space exploration,” positioning China to challenge the U.S. in its return to the Moon and beyond.
With inputs from Reuters
