SpaceX Eyes Massive AI Leap: Targets 13 GW Computing Capacity by 2027
SpaceX aims for 13 GW of AI computing capacity by 2027 to meet surging demand, potentially generating up to $1 trillion in annual revenue.
In a bold move to dominate the rapidly evolving landscape of artificial intelligence, SpaceX is aggressively scaling its infrastructure. According to a report by UBS, the company is now targeting a staggering SpaceX AI computing capacity of 13 gigawatts (GW) by the end of 2027, driven by a global demand for computing power that continues to outstrip available supply.
Shattering Previous Estimates
The scale of this expansion is far beyond what was initially envisioned. SpaceX had previously expected to reach a capacity of 2.5 to 3 GW by the end of 2027. However, due to an overwhelming surge in demand for leasing AI computing power, the company has pivoted, seeking an additional 10 GW of capacity.
To put this growth in perspective, the report notes that the company had 1.7 GW in the third quarter and reached 2.2 GW in October. The trajectory suggests a massive acceleration in infrastructure deployment to meet the needs of major technology firms.
Musk’s Vision: High Demand and Fast Paybacks
Elon Musk has indicated that the appetite for this computing power is so intense that SpaceX could potentially sell its available capacity several times over. This high demand is expected to push spot rental rates higher, which could dramatically shorten the investment recovery period. Musk anticipates that the payback period on these investments could drop to approximately six months by next year.
Furthermore, the UBS report suggests that if power generation availability allows, SpaceX could potentially push its limits even further, reaching as much as 20 GW of computing capacity by 2027.
The Financial Stakes: Trillions in Potential Revenue
The financial implications of this infrastructure build-out are astronomical. UBS estimates that if SpaceX splits its capacity equally between internal use and leasing to external customers, the infrastructure could support an annual recurring revenue (ARR) ranging from USD 500 billion to USD 1 trillion by the end of 2027. This is a massive jump from the USD 100 billion expected by the end of 2026.
The Cost of Ambition
Such growth requires an unprecedented level of investment. SpaceX has guided for capital expenditure of USD 35 billion to USD 40 billion in the fourth quarter of 2026, a significant increase from the USD 19.6 billion spent in the third quarter. Overall, UBS estimates that achieving the 13 GW target will require a total spend of around USD 350 billion.
Rapid Growth Across Segments
The company's AI-related business is already showing explosive growth. Revenue from the SI segment, which encompasses AI cloud services and infrastructure, surged to USD 7.6 billion in the third quarter, up from USD 2.6 billion in the preceding quarter. Similarly, EBITDA for this segment climbed to USD 5 billion from USD 1.1 billion.
Beyond the realm of AI, SpaceX continues to hit milestones in other sectors:
- Connectivity: Revenue reached USD 5.2 billion, marking a 70 per cent increase year-on-year.
- Space Exploration: The Starship Flight 14 successfully completed its first orbital and revenue-generating mission, marking a major technical victory.
The Path Forward
While the goals are ambitious, UBS highlights that the actual realization of these targets depends on several critical factors: the seamless execution of computing infrastructure plans, the securing of new AI deals, and the continued progress of the Starship programme.