The Federal Communications Commission (FCC) announced a public review of SpaceX’s application to launch 1 million satellites to operate AI workloads. The satellites, which will reportedly use solar power, highlight the need to reshape AI infrastructure.
SpaceX made the proposal in response to the growing global demand for AI-powered work. With this operation, Elon Musk’s company could supply capacity and upgrade much of the existing AI infrastructure, while also eliminating the need for locally generated power since it would operate using solar energy.
While it presents several advantages at the current operational level, it also mentions that approximately 200,000 launches per year will be needed to be effective, a demand that depends on significant increases in launch frequency and reductions in the cost per launch.
SpaceX’s proposal and its technical and regulatory hurdles
The FCC review will evaluate multiple interconnected issues. Technically, the most important is demonstrating the feasibility of solar-powering the entire operation, as well as proving that the required number of launches per year can be achieved.
The review also covers the lifespan of the satellites and how often they need to be replaced. Regarding the environment, astronomers and advocacy groups pointed to increased light pollution, interference with observations, and the risk of exacerbating orbital debris and Kessler syndrome.
The filing comes amid SpaceX’s announced merger with Musk’s AI company, xAI, which has raised legal and market consolidation questions from rivals and experts. The FCC has indicated that SpaceX cannot circumvent existing rules such as BEAD.
A protracted review, strong public criticism, or imposed conditions on spectrum and debris mitigation could delay or limit the project and reduce the likelihood of a large-scale deployment. Conversely, any path that materially accelerates launch demand would alter capacity forecasts for high-lift vehicles and could change the strategic positioning among launch providers and cloud/AI infrastructure companies.
The FCC may amend requirements, grant limited authorizations, or require reviews after considering technical, environmental, and competition input. Operators and managers should treat this as a regulatory event with high political uncertainty and model scenarios that include partial approvals, required mitigation measures, and potential antitrust reviews related to the merger with xAI.
