SpaceX Targets 13 GW of AI Computing Capacity by 2027 Driven by High Demand

SpaceX is ramping up its artificial intelligence infrastructure expansion, setting a target of 13 gigawatts of computing capacity by the end of 2027. A report by UBS highlights that the company has significantly exceeded prior estimates, driven largely by stronger-than-expected demand for leasing AI computing capacity.

Under the revised targets, SpaceX aims to add approximately 10 gigawatts of capacity by the end of 2027, a substantial increase from the 2.5 to 3 gigawatts it had previously anticipated. UBS noted that Elon Musk indicated current demand is robust enough for the company to sell its computing capacity several times over. Furthermore, spot rental rates are expected to rise further, potentially reducing the investment payback period to around six months next year.

Depending on power generation availability, UBS reported that Musk suggested capacity could potentially reach up to 20 gigawatts in 2027. Assuming an even split between capacity kept for internal use and leased to customers, this infrastructure could generate annual recurring revenue between USD 500 billion and USD 1 trillion by the end of 2027. This compares to an expected USD 100 billion by the end of 2026.

Achieving these capacity goals will require significant financial investment. SpaceX has guided for capital expenditure between USD 35 billion and USD 40 billion in the fourth quarter of 2026, up from USD 19.6 billion in the third quarter. UBS estimates that reaching the 13 gigawatt target will require spending approximately USD 350 billion.

Financial metrics from the report also showed growth across SpaceX's business segments. Revenue from its AI cloud services and infrastructure segment rose to USD 7.6 billion in the third quarter, up from USD 2.6 billion in the previous quarter. Earnings before interest, taxes, depreciation, and amortisation for this segment increased to USD 5 billion from USD 1.1 billion.

In addition to AI computing, the company recorded USD 5.2 billion in connectivity revenue, marking a 70 percent increase year-on-year. SpaceX's space business also achieved a operational milestone, with Starship Flight 14 completing its first orbital and revenue-generating mission.

UBS noted that the realization of SpaceX's infrastructure expansion depends on the execution of its computing plans, the securing of new AI deals, and continued progress in its Starship programme.

"The massive capital expenditure and aggressive capacity targets outlined by SpaceX highlight the immense global demand for AI infrastructure. When a company scales its computing infrastructure ambitions from a few gigawatts to double-digit figures in a short window, it signals a structural shift in how foundational technology is consumed and monetized. For businesses operating in the tech ecosystem, this emphasizes the critical importance of power availability, infrastructure execution, and capital management as AI adoption continues to accelerate globally." — Dr. Shishir Gupta, Founder & CEO, StartupLanes