The company reportedly understands that regulators are unlikely to approve a network of this scale and is using the inflated figure as an opening position for negotiations.

The project envisions a network of low-Earth-orbit data centers connected via laser links. The filing uses ambitious language, describing the initiative as a “first step toward a Type II civilization on the Kardashev scale.”

Even deploying a small fraction of the proposed one million satellites would significantly increase the number of artificial objects in orbit. According to the European Space Agency, around 15,000 satellites are already orbiting Earth, more than 9,600 of which belong to SpaceX.

Experts warn of a growing risk of space debris and orbital collisions. Musk’s company, however, argues that orbital data centers could become a cheaper and more environmentally friendly alternative to terrestrial facilities.

Instead of draining water from populated areas, contaminating groundwater, or driving up electricity costs, space-based data centers could rely on real-time solar energy and use the vacuum of space for natural cooling.

Data for AI

Musk’s ambitions in artificial intelligence are also expanding. On January 15, SpaceX updated Starlink’s privacy policy to allow the collection of customer data for training neural networks.

The revised policy states that user information may also be shared with service providers and “third-party partners” without additional disclosure.

Starlink collects large volumes of user data, including credit card information and IP addresses.

Earlier reports indicated that three Musk-controlled companies—SpaceX, xAI, and Tesla—are in talks about a potential merger. Such a deal could take place ahead of SpaceX’s IPO, combining Grok, X, Starlink, and rocket infrastructure under a single corporate structure.

A merger of this kind could significantly accelerate the rollout of AI-powered services across SpaceX products, while giving xAI access to massive datasets for training future models.

Conclusion:

SpaceX’s proposal highlights how rapidly AI ambitions are converging with space infrastructure. While orbital data centers promise scalable, solar-powered computing and strategic advantages for AI development, the sheer scale of the plan raises serious regulatory, environmental, and data-governance questions.