Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a><\/p>\n Artificial intelligence growth<\/a>, however, will be greatly limited by data center infrastructure. Without more data centers, SpaceX’s AI ambitions will remain capped. Building more data centers as quickly as possible is, therefore, now critical to SpaceX’s long-term growth and survival.<\/p>\n There’s just one problem: Data centers themselves have several growth constraints.<\/p>\n “The race to scale AI has triggered one of the largest infrastructure build-outs in modern history,” observes a recent report from global consultancy McKinsey & Co. “By our estimates, global spending on data centers could reach $7 trillion by 2030. Whether a build-out is successful depends on many nuances, including the availability of capital and energy resources.”<\/p>\n SpaceX now has plenty of capital to build massive amounts of data centers. But there is still the issue of energy resources. This challenge is a big reason\u00a0SpaceX CEO\u00a0Elon Musk has considered\u00a0launching data centers into space — so-called orbital data centers. It’s also why other major technology companies like Alphabet, the parent company of Google, are interested in space-based data centers. In space, cooling needs would be significantly reduced, with abundant solar power available for near-constant use.<\/p>\n According to reports, SpaceX and Google may soon be teaming up to make orbital data centers a reality. The potential is huge. But there are two concerns investors should be wary of.<\/p>\n 1. Orbital data centers are not a current reality <\/p>\n Launching data centers into space remains a theoretical possibility. No company or individual has ever succeeded in doing so. And depending on who you ask, it might not even be possible.<\/p>\n Story Continues <\/p>\n The vacuum of space, for example, makes convection physically impossible. Heat dissipation, therefore, becomes an immense physical challenge, likely requiring breakthroughs and new technological approaches with minimal real-world proof points. “Ultimately, the physics tax is universal,” warns one industry report. “Whether managing heat rejection in the vacuum of low Earth orbit or managing power density in a hyperscale facility in Northern Virginia, the constraint is never the silicon. It’s the thermodynamics.”<\/p>\n Others, however, caution that the physics are indeed possible. The question is really whether overcoming physics is worth the economic cost. “This is not physically impossible; it’s only a question of whether this is a rational thing to scale up economically,” notes Andrew McCalip, an industry insider. “The answer is it’s really close. And if you own both sides of the equation, SpaceX and xAI, it’s not a terrible place to be. I wouldn’t bet against Elon.”<\/p>\n SpaceX now has significantly more capital at its disposal. But its capital is not never-ending. This is likely why we see SpaceX talking with Google about a potential partnership rather than funding its efforts completely independently. Google, after all, is already spending heavily to make orbital data centers a reality.<\/p>\n “Last year, Google announced its own plans to launch prototype satellites by 2027 as part of a moonshot initiative called Project Suncatcher,” reports The Wall Street Journal. Partnering with a well-funded SpaceX could lower its launch costs and speed deployment. SpaceX, meanwhile, can generate revenue for both its rocket and AI segments by partnering with Google. In a nutshell, Google will front much of the upfront capital, relieving SpaceX of some of the financial strain.<\/p>\n For its part, Google appears relatively bullish on the idea. “We’ll send tiny racks of machines and have them in satellites, test them out, and then start scaling from there,” Google’s CEO, Sundar Pichai, said in November. “There’s no doubt to me that a decade or so away, we’ll be viewing it as a more normal way to build data centers.” Investors, however, need to form their own assessment.<\/p>\n Should you buy stock in Space Exploration Technologies right now? <\/p>\n Before you buy stock in\u00a0Space Exploration Technologies, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Space Exploration Technologies\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $424,531!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,273,016!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 17, 2026. <\/p>\n Ryan Vanzo<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy<\/a>.<\/p>\n Image source: Getty Images. 2. Capital constraints could make partnering critical <\/p>\n