Project Suncatcher Builds Hype for SpaceX IPO

Quick overview

Orbital data centers could be the future for both SpaceX and Google in a joint venture that is developing ahead of the SpaceX IPO (Initial Public Offering).

On May 12th, Alphabet Inc. (GOOGL) made an announcement about a conversation the company was having with SpaceX to create data centers in space. This venture, known as Project Suncatcher, is already underway. Begun in late 2025, the project would take scaled machine learning and put it into outer space in a way that sidesteps the limitations of vast land space required for these centers planet side.

Data centers necessitate tremendous power sources and large swaths of land, and there is more room for a major venture like this in space. Google already plans to launch the first two trial satellites some time in 2027 by working with Planet Labs.

The Close Ties between SpaceX and Google

SpaceX may become the first company to build a data center in space thanks to their proprietary technology, and their close connection with Google means that Alphabet may be the first company to have orbital data centers. Alphabet owns about a 6% stake in SpaceX after heavily investing in them, so the path toward the two companies creating a space data center together is not very far-fetched.

Later this year, SpaceX is supposed to be launching its IPO. This could be the biggest public offering ever, estimated to be worth about $2 trillion at this point. The company is expected to join the S&P 500, which could happen as early as this summer.

If the IPO launches according to the current detailed plan that Elon Musk has in place for it, the launch will give Musk tremendous control over the company and shut out stockholders from some of the decision-making processes that are intrinsic to most public businesses.

There is concern that Musk’s power over the company would be too great, and pension leaders in New York and California posted a letter criticizing what they allege is overreach. Musk would be able to veto his own removal and would supersede any requirements for an independent board.

If SpaceX launches with a valuation around $2 trillion, stockholders should not expect that number to stand for very long. There is a history of high priced IPOs losing their value quickly as the hype dies down and the company fails to meet expectations in key areas. As impressive as an orbital data center would be, the launch would be incredibly expensive and may not yield much in the way of profits for either Alphabet or Space X for a long time to come.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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