SpaceX’s Orbital AI Data Center Drive Meets Ocean-Based Competition

In June 2026 SpaceX, after a $60 billion purchase of Cursor and a $2.7 trillion IPO, announced orbital AI data centers to host “the world’s most useful” models. The move follows rising AI compute demand and opposition to land-based data centers, prompting off-site power from space or sea.

SpaceX's Orbital AI Data Center Play

Key actors are Elon Musk (SpaceX, xAI), the acquired Cursor/Anysphere, and Panthalassa led by CEO Garth Sheldon-Coulson, Brian Moffatt and Daniel Place. Investors include Peter Thiel, John Doerr, Marc Benioff and Mike Schroepfer.

Forbes

SpaceX’s launch cost is $90 million per ton—roughly 100 × higher than Panthalassa’s buoys, which generate up to 1 MW, cost ~2 ¢/kWh, and achieve >90 % capacity factor. Panthalassa raised $140 million Series B, targets “10 terawatts” of wave power; SpaceX seeks 100 terawatts, far above current data-center use.

Forbes

Off-planet or offshore compute could reshape energy security, cut emissions, and ease local opposition to data centers. The DOJ warns that limiting xAI’s Grok AI would harm U.S. national security, citing its role in the Iran war.

CNBC

SpaceX says Cursor deal enables the “world’s most useful” AI models. Musk stresses data centers will use solar power and satellite links to bypass land constraints. DOJ filing calls NAACP suit a threat to “American national, economic, and energy security.” Panthalassa claims its buoys deliver AI compute “at a fraction of the cost and with zero emissions.”

CNBC

NAACP sued SpaceX over alleged Clean Air Act violations by xAI’s methane turbines in Tennessee. Local groups have protested Memphis-area Colossus 1/2 data centers for noise and water use. Engineers warn orbital data centers face radiation, thermal-radiator, and servicing challenges; wave-energy projects have historically struggled to scale.

CNBC

SpaceX targets orbital deployment by 2028; Panthalassa expects its first commercial buoy in 2027. No cost estimate exists for orbital system, while Panthalassa’s “100 × cost advantage” lacks a baseline. The claimed 100-to-1,000-fold lower capability of SpaceX’s AI1 Compute Satellite versus Earth data centers is unverified, and emissions comparisons remain absent.

Forbes

• “What we’re doing is totally crazy” — Garth Sheldon-Coulson, CEO, Panthalassa

Forbes

• “This will be the lowest cost way to do large segments of AI computing, inference reinforcement learning, without any emissions at all,” — Garth Sheldon-Coulson, Panthalassa

Forbes

• “We're going to use literally 10 terawatts of untapped wave power in a part of the ocean that no shipping is in. There's nothing there,” — Mike Schroepfer, Gigascale Capital

Forbes

• “is a matter of paramount national security.” — Cameron Stanley, AI lead, U.S. Department of Defense

CNBC

SpaceX plans a 2028 AI1 Compute Satellite demo, pending Starship launch cadence. Panthalassa aims to launch a second-generation buoy in 2027 and scale to hundreds of units by early 2030s. Orbital seeks a radiation-shielding test flight in 2028. DOJ’s motion to dismiss the NAACP suit is pending.

Forbes