FCC Opens Review of SpaceX Plan to Run AI Data Centers from Orbit

The US Federal Communications Commission (FCC) has opened a public review of SpaceX’s application to deploy a non‑geostationary satellite system that would perform data‑center AI workloads in orbit. SpaceX proposes a scalable constellation — the filing cites potential growth up to one million satellites operating roughly 310–1,240 miles above Earth — that would use high‑bandwidth optical (laser) inter‑satellite links, TT&C (telemetry, tracking and command), and integration with the Starlink network so data can transit Starlink, be processed in orbit, and then be delivered to ground stations. The proposal follows Elon Musk’s consolidation of xAI into SpaceX and positions an “Orbital Data Center” as an energy‑efficient, in‑orbit compute layer for training and running large AI models (including Grok). The FCC notice requests public comment and will assess regulatory, spectrum, collision‑risk and national‑security considerations; it also reviews related waiver requests. This review starts a formal process — not an approval — that may include technical evaluation and interagency consultation. Key implications for traders: the plan could strengthen ties between satellite communications (Starlink) and AI services, influence spectrum allocation and commercial satellite policy, and create new infrastructure that firms might leverage for distributed AI compute. Monitor regulatory developments and any links between SpaceX/Starlink and crypto projects or tokenized infrastructure, as approvals or restrictions could affect investor sentiment in related technology and infrastructure sectors.