China is planning to deploy artificial intelligence data centres in space within the next five years, according to state media, in a move that directly rivals Elon Musk’s ambitions to build orbital data centres through SpaceX.
China’s main space contractor, the China Aerospace Science and Technology Corporation (CASC), said it will develop “gigawatt-class” digital infrastructure in orbit, as outlined in a five-year plan cited by state broadcaster CCTV. The project aims to combine cloud, edge, and device-level systems, allowing large volumes of data from Earth to be processed directly in space.
SpaceX, meanwhile, plans to use funding from its expected $25 billion IPO to build solar-powered AI data centre satellites. Musk said at the World Economic Forum in Davos that these systems could launch within two to three years, arguing that solar energy in orbit is far more efficient than on Earth.
China has similar goals, with CASC planning to shift energy-intensive AI workloads into space by building massive solar-powered hubs, forming what it calls a “Space Cloud” by 2030. This strategy is also a key part of China’s upcoming 15th Five-Year Plan.
Beyond AI, CASC also intends to advance space tourism, including suborbital and orbital flights over the next five years. The broader goal is to position China as a leading global space power by 2045.
However, China still faces challenges, particularly in reusable rocket technology, where SpaceX currently dominates with its Falcon 9 system. Despite this, China recorded a record 93 space launches last year, driven by rapid growth in its commercial space sector.
The plans were announced shortly after China opened its first School of Interstellar Navigation, highlighting its ambition to move beyond low Earth orbit toward deep space exploration.
Meanwhile, the U.S. and China remain locked in an increasingly intense race for technological and strategic leadership in space.