, Challenging Musk’s Orbital Ambitions

China is moving to build space-based artificial intelligence data centres, setting up a direct challenge to Elon Musk’s vision for orbital computing through SpaceX.

State media reported that China Aerospace Science and Technology Corporation (CASC) plans to deploy “gigawatt-class” digital intelligence infrastructure in orbit over the next five years. The initiative aims to process data directly in space by tightly integrating computing power, storage and high-bandwidth transmission.

The plan mirrors ambitions outlined by SpaceX, which expects to use proceeds from its proposed $25 billion IPO to develop solar-powered AI data centre satellites. Speaking at the World Economic Forum in Davos last week, Musk said space would soon become the lowest-cost location for AI computing, citing orbital solar power’s ability to generate up to five times more energy than Earth-based panels.

China’s strategy envisions shifting energy-intensive AI workloads into orbit via massive solar hubs, forming an industrial-scale “Space Cloud” by 2030. The concept is a core pillar of China’s upcoming 15th Five-Year Plan and aligns with broader goals to expand space tourism, deepen commercial space activity and establish China as a leading space power by 2045.

While China has ramped up launch activity, its progress is constrained by the lack of a fully reusable rocket — a capability that has allowed SpaceX to dominate low-Earth orbit through Falcon 9 and Starlink. The announcement follows China’s launch of its first School of Interstellar Navigation, signalling a strategic shift from near-Earth operations toward deep-space exploration.