SpaceX Plans to Build a Natural Gas Pipeline to Fuel Its Rockets. Here's What Energy Investors Need to Know.
Natural gas may prove critical to SpaceX's growth plans.
Overview
Following its IPO and subsequent bond offering, Space Exploration Technologies (NASDAQ: SPCX) now has more than $100 billion in new capital at its disposal. Expect SpaceX to go on a massive spending spree to spur growth and justify its $2 trillion valuation.
What will SpaceX's spending focus on? Artificial intelligence will likely be the biggest beneficiary. More than 90% of SpaceX's claimed total addressable market is AI-focused. That means investors should expect the company to dramatically scale terrestrial data center construction. But SpaceX will also now aggressively pursue putting AI data centers into space -- so-called orbital data centers (ODCs).
Details
ODCs will need many things to happen before they become a reality, one of which is successful commercialization of SpaceX's Starship megarocket. This megarocket -- which is significantly larger than the company's Falcon Heavy rocket -- would meaningfully improve SpaceX's ability to get larger payloads to space more affordably. ODCs, for example, could be launched at scale using Starship rockets.
Source
Originally published at www.fool.com.