China plans to deploy space-based artificial intelligence data centres within the next five years, state media reported, as Beijing steps up efforts to combine space technology and advanced computing in a move that could directly challenge initiatives outlined by SpaceX.
China’s main space contractor, China Aerospace Science and Technology Corporation (CASC), said it will work toward building “gigawatt-class space digital-intelligence infrastructure” under its latest five-year development plan, according to state broadcaster CCTV. The planned infrastructure would integrate cloud, edge and terminal computing capabilities, enabling data collected on Earth to be processed directly in orbit.
The initiative forms part of China’s broader strategy to expand commercial space activity and reduce the energy constraints associated with large-scale AI computing. CASC has said the proposed space-based data centres would deliver advances in computing power, data storage and transmission bandwidth, potentially allowing more scalable AI operations than terrestrial facilities.
The plans put China on a parallel track with SpaceX founder Elon Musk, who has said the U.S. company intends to develop solar-powered AI data centre satellites. Musk has argued that space-based solar generation could provide several times more energy than ground-based systems, making orbit an attractive location for energy-intensive AI workloads. SpaceX has indicated its first such satellites could be launched within the next few years.
China and the United States are increasingly competing to commercialise space while also securing strategic and military advantages. Beijing has framed its space ambitions around building long-term technological independence, including plans for a solar-powered “Space Cloud” to be operational by around 2030, as outlined in national development planning documents.
Despite rapid progress, China continues to face technical challenges, particularly in reusable launch systems. SpaceX’s Falcon 9 rocket, which can be reflown multiple times, has sharply reduced launch costs and enabled its Starlink network to dominate low Earth orbit satellite deployments. China has yet to complete a comparable reusable rocket capability, a factor analysts say could constrain the pace and cost-efficiency of its space expansion.
China’s space sector has nonetheless gathered momentum, recording a high number of launches in recent years supported by a growing commercial launch industry. CASC has also signalled ambitions beyond AI infrastructure, including space tourism and deeper-space exploration.
The AI data centre plans follow the recent opening of China’s first School of Interstellar Navigation at the Chinese Academy of Sciences, aimed at training specialists in deep-space propulsion and navigation. State media have described the initiative as part of China’s transition from near-Earth operations toward more ambitious deep-space missions.
As competition intensifies, analysts say the coming decade is likely to see the U.S. and China vie not only for leadership in launch and satellite services, but also for dominance in emerging space-based computing and data infrastructure.
Reuters
