Louisiana’s $100B SpaceX project is also a bet on data centers in space

SpaceX’s $100 billion Louisiana spaceport could eventually play another role beyond launching rockets: helping put computing infrastructure in space.

As part of its plan to support thousands of launches each year, the new base in Vermilion Parish’s Pecan Island “will facilitate missions to Earth orbit for building orbital data centers,” Louisiana Economic Development said in a release officially announcing the project.

SpaceX and Nvidia are partnering to launch satellites designed to run AI computing in the fourth quarter of 2027, with plans to significantly scale up deployments in 2028, per an X post yesterday by SpaceX CEO Elon Musk.

At Pecan Island, Starship vehicles will be used to deploy Starlink satellites, which, alongside internet connectivity, will move supercomputing to outer space, according to SpaceX President Gwynne Shotwell.

“As AI continues to advance, it can take advantage of the limitless resources that are off-planet instead of here on planet,” Shotwell said at the announcement.

SpaceX did not respond to Technical.ly’s request for additional comment.

Avoiding terrestrial constraints won’t be cheap or easy

As currently designed, orbital data centers house the same IT infrastructure that makes up a traditional data center, but instead of a footprint on Earth, they’re floating on a satellite in space and powered by the sun’s rays.

In the startup world, Redmond, Washington’s Starcloud is among the companies betting on it. The orbital data center company has raised $450 million since its founding as it develops a new model for computing in space.

The tech, still in its nascent phase, is meant to combat some of the traditional data center concerns, like finding enough power to fuel the facilities without putting a strain on the electric grid. Space-based data centers could use constant solar energy and process satellite data in orbit, reducing the need to send large amounts of information back to Earth. 

Getting all that hardware into orbit comes with its own costs. Every chip, solar panel and other piece of equipment has to survive radiation and extreme temperatures. In space, there’s no air to carry heat away from the hardware, so these clusters would also need massive radiator structures for cooling. And if something breaks or overheats, a technician can’t make a last-minute trip to outer space to fix it.

When you factor in the costs of rocket fuel, land development and the other resources needed to even get the equipment to space, it’s hard to say whether that’s actually more efficient than building data centers here on Earth.

There’s also the problem of hardware becoming obsolete — especially considering how quickly AI technology is evolving, with new types of chips and computing architecture. As equipment in orbit becomes outdated, keeping track of it could become as big a problem as getting it there.

Louisiana makes room for aerospace growth

SpaceX and Louisiana officials are promising the Vermillion Parish spaceport will bring 3,000 direct new jobs over the next decade, with an average annual salary of $92,600.

Construction will likely begin early next year, with plans for the first launch as soon as 2029, according to the press release. SpaceX expects to build 10 launchpads across five campuses with on-site power generation, plus a propellant farm to manage rocket fuel and other materials. 

Like its Boca Chica, Texas, location, employees will also have access to residential housing on site. Roughly 500 people voluntarily live in the Starbase incorporated town, though it’s unclear what the Louisiana facilities will look like.

The deal went from a phone call on Feb. 5, 2026, to a signed agreement in roughly six months, according to Louisiana Economic Development Secretary Susan B. Bourgeois.

During the first half of the year, the state offered SpaceX a substantial package of economic incentives to pave the way for the project, passing a major wave of aerospace-friendly legislation at the state capitol.

Five separate bills supporting the industry — including an exemption to public records laws, new tax incentive eligibility and limited legal liability for certain actions — have been signed into law.

SpaceX will participate in the new Aerospace Facilities and Activities Rebate as well as the High Impact Jobs and FastStart programs, according to a press release. SpaceX entered into a Payment in Lieu of Taxes agreement with local taxing bodies, including a $20 million upfront payment and $25 million annually for 25 years, with payments increasing each year. 

At the announcement, officials described upcoming town halls to keep community voices front of mind, and half-off Starlink internet services for Vermilion Parish residents.

Those benefits may be welcome, but spaceports can be complicated neighbors. Residents near other SpaceX facilities have raised concerns about noise, environmental impacts and disruptions from launches and testing.

“[SpaceX’s] investment means more than just steel, technology and capital,” Gov. Jeff Landry said at the announcement event. “It represents jobs for our families. It represents momentum for our communities. And it represents protection for our coast.”