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China Plans Space-Based AI Data centers, Challenging SpaceX
3 min read China plans to deploy space-based AI data centres over the next five years, with CASC aiming to build gigawatt-class infrastructure in orbit. The move positions China to compete with Elon Musk’s SpaceX in the emerging frontier of orbital AI and cloud computing. January 29, 2026 11:28
China is aiming high — literally. Over the next five years, the country plans to deploy space-based AI data centers, a move that could challenge Elon Musk’s SpaceX ambitions in orbital data infrastructure.
According to state media, China’s main space contractor, China Aerospace Science and Technology Corporation (CASC), intends to “construct gigawatt-class space digital-intelligence infrastructure”, as part of a five-year development roadmap cited by CCTV.
Why This Matters
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A new frontier for AI and cloud computing: Space-based AI centres could provide ultra-low latency data processing and global coverage.
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Strategic competition: Musk’s SpaceX has also explored orbital data centres and space-based cloud services. China’s plan signals an intensifying race for AI dominance beyond Earth.
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Potential global impact: Companies relying on cloud AI services may soon face infrastructure options not just on Earth, but in orbit — reshaping latency, bandwidth, and even geopolitical control of AI data networks.
The Takeaway
China is betting that the next stage of AI isn’t just terrestrial — it’s orbital. While SpaceX has been the poster child for space tech innovation, CASC’s ambitions suggest that the AI race may soon extend into space, creating a high-stakes contest between the U.S. and China for the future of digital intelligence infrastructure.
Hot take: AI in orbit could redefine computing, data privacy, and international tech rivalry — and Musk isn’t the only one aiming for the stars.
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