People visit the booth of China Aerospace Science and Technology Corporation at China Beijing International High-tech Expo in Beijing, China June 8, 2017. REUTERS/Jason Lee
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CNBC TV1829-01-2026, 13:17

China Challenges SpaceX with Gigawatt Space AI Data Centers

  • China plans to launch space-based AI data centers within five years, directly challenging Elon Musk's SpaceX ambitions.
  • China Aerospace Science and Technology Corporation (CASC) aims to build "gigawatt-class space digital-intelligence infrastructure" for processing Earth data in space.
  • SpaceX also plans solar-powered orbital AI data centers within 2-3 years, citing energy constraints on Earth and higher power generation in orbit.
  • Both nations seek to shift energy-intensive AI processing to space, with China targeting an industrial-scale "Space Cloud" by 2030.
  • The competition extends to space tourism and achieving space dominance, though China faces a bottleneck in reusable rocket technology compared to SpaceX's Falcon 9.

Why It Matters: China and the US are in a fierce race to establish space-based AI data centers and achieve space dominance.

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