Beijing – China has announced plans to launch space-based artificial intelligence data centres over the next five years, a move that directly challenges Elon Musk’s SpaceX, which is also racing to deploy orbital computing hubs.
According to state broadcaster CCTV, China’s main space contractor, the China Aerospace Science and Technology Corporation (CASC), has pledged to construct “gigawatt-class space digital-intelligence infrastructure” as part of its latest five-year development plan.
Space Cloud Vision
The new data centres will integrate cloud, edge, and terminal device capabilities, achieving deep integration of computing power, storage, and transmission bandwidth. This would allow data generated on Earth to be processed in orbit, reducing the energy burden on terrestrial systems.
China’s long-term vision includes creating an industrial-scale “Space Cloud” by 2030, powered by gigawatt-class solar hubs. A December CASC policy document identified the integration of space-based solar power with AI computing as a core pillar of the upcoming 15th Five Year Plan, China’s economic roadmap.
SpaceX’s Rival Plans
Meanwhile, U.S. rival SpaceX is preparing to fund its own orbital AI data centres through a planned $25 billion IPO this year. Musk told the World Economic Forum in Davos last week that solar-powered satellites could be launched within two to three years.
“It’s a no-brainer building solar-power data centers in space … the lowest-cost place to put AI will be space and that will be true within two years, three at the latest,” Musk said, noting that orbital solar generation produces five times more power than ground-based panels.
Space Tourism and Strategic Competition
Beyond data centres, CASC also vowed to achieve suborbital space tourism flights and gradually develop orbital tourism within five years. The announcement underscores China’s ambition to transform itself into a “world-leading space power” by 2045, competing with the U.S. not only in commercial space ventures but also in military and strategic dominance.
China’s progress has been tempered by its inability to complete a reusable rocket test, a technology that SpaceX’s Falcon 9 has already mastered. Reusability is crucial to lowering launch costs and enabling large-scale deployment of satellites.
Still, China achieved a record 93 space launches in 2025, buoyed by its growing commercial spaceflight startups.
Building Talent for Deep Space
CASC’s announcement came just after China inaugurated its first School of Interstellar Navigation at the Chinese Academy of Sciences, aimed at training the next generation of space talent in fields such as interstellar propulsion and deep space navigation.
“The next 10 to 20 years will be a window for leapfrog development in China’s interstellar navigation field. Original innovation in basic research and technological breakthroughs will reshape the pattern of deep space exploration,” wrote Xinhua.
Conclusion
China’s push into orbital AI data centres highlights the intensifying space race between Beijing and Washington, as both nations seek to commercialize space exploration and secure strategic advantages. With Musk promising solar-powered AI hubs within three years and China aiming for a “Space Cloud” by 2030, the next decade is set to redefine the future of computing, energy, and human presence beyond Earth.
