Key facts
- Google will pay SpaceX $920 million per month from October 2026 to June 2029.
- The deal between Google and SpaceX covers approximately 110,000 Nvidia GPUs, CPUs, and memory components.
- SpaceX CEO Elon Musk states orbital AI data centers can be built with existing technology.
- SpaceX aims for production ramp-up of orbital AI data centers by the end of next year.
- SpaceX aims to deploy 100 gigawatts of AI compute capacity in orbit.
- Google released data center water consumption standards, aiming to return more water than consumed by 2030.
- Google will avoid water-intensive cooling in stressed regions for its data centers.
- The European Parliament will switch its default search engine to Qwant starting June 4, 2026.
- AI backlash and data center opposition are concentrated in Democratic-leaning areas.
- Tesla's hovering car unveiling is postponed to August.
SpaceX is poised to become a significant provider of AI compute capacity for Google, with a deal stipulating Google will pay $920 million per month from October 2026 to June 2029. This payment covers approximately 110,000 Nvidia GPUs, CPUs, and memory components, intended to meet the escalating demand for Google's Gemini Enterprise AI platform. This arrangement mirrors a previous agreement SpaceX established with Anthropic.
SpaceX CEO Elon Musk has indicated that the construction of orbital AI data centers is achievable using current technological capabilities, specifically by leveraging components from Starlink V3 satellites. Musk anticipates that production could begin ramping up by the end of the following year, with the company aiming to deploy 100 gigawatts of AI compute capacity in orbit. However, challenges associated with building and maintaining such space-based facilities were discussed by Starcloud CEO Philip Johnston.
In a separate development concerning data center operations, Google has introduced a framework for managing water consumption. This initiative aims to establish an industry standard amidst increasing community opposition. Key components of Google's guidelines include a commitment to return more water than the company consumes by 2030 and a directive to avoid water-intensive cooling methods in regions experiencing water stress. This move also seeks to enhance transparency in water usage.
Further diversification in the digital services landscape is marked by the European Parliament's decision to switch its default search engine from Google to Qwant, a French alternative, effective June 4, 2026. This strategic shift aligns with the European Union's broader objectives to decrease dependence on U.S. technology and to champion European digital services.
Analysis from the Brookings Institution highlights a geographical concentration of AI anxiety and opposition to data center construction within Democratic-leaning areas. This 'techlash' phenomenon poses a potential risk to Democratic candidates in upcoming elections, as a majority of the American populace believes the government is not adequately regulating artificial intelligence. Concurrently, Hut 8 CEO has suggested that energy costs within the AI data center industry are actually decreasing, contrary to prevailing assumptions.
In other news, Tesla CEO Elon Musk has postponed the unveiling of the company's thruster-powered hovering car, with the event now scheduled for August.