SpaceX’s (NASDAQ:SPCX) ambitions to move computing infrastructure into orbit could become more attractive as political resistance to terrestrial data centers intensifies across the US, Evercore ISI said in a note to investors.
Analyst Kutgun Mural pointed to an increasingly difficult political and regulatory environment for new data center developments. Texas has paused as many as 1,800 projects pending audits, while Pennsylvania is holding back permits until developers have secured all necessary approvals from local authorities.
The shift is also visible in public opinion. According to polling referenced by Evercore, 75% of Americans would now oppose a data center being developed near them, a substantial increase from 42% a year earlier.
Data centers move further into political spotlight
Evercore expects the issue to attract greater attention ahead of the US midterm elections, although the firm currently views the potential impact primarily in terms of negative headlines rather than changes to financial forecasts.
“We expect both parties to be loud on the topic into November 3 and would not be surprised if the entire AI complex takes negative headlines along the way,” Mural wrote.
SpaceX appears comparatively well positioned when measured against some of the emerging requirements for terrestrial data centers, according to Evercore. The company produces power behind the meter and has pledged to pay for grid improvements required to support its facilities, potentially limiting the financial burden on residential customers.
That does not mean the company is immune from regulatory challenges. Evercore pointed to Southaven as evidence that SpaceX can still encounter disputes involving environmental justice, emissions and permitting.
Political resistance may strengthen orbital compute case
The expanding backlash against terrestrial infrastructure could provide another argument for SpaceX’s orbital computing plans, particularly if the company can demonstrate that the technology is commercially and technically viable.
“If SPCX can make orbital compute a reality it could have a significant advantage in both cost and speed to market and avoid the political pressure around terrestrial compute altogether,” the firm wrote.
Under that scenario, Evercore estimates that SpaceX could avoid needing further terrestrial computing capacity after 2029, potentially giving orbital infrastructure a role in addressing both expansion requirements and political constraints.
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