The U.S. Space Force has awarded SpaceX a $2.29 billion contract to build the backbone of a new military communications network in Space
The project, known as the Space Data Network Backbone, will use a constellation of low-Earth orbit satellites connected through laser communication links to move military data faster and more securely around the world.
Instead of relying heavily on ground stations, the system is designed to pass information directly between satellites in space, helping the military improve real-time communication, tracking, and coordination across defense systems.
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The network will also integrate with the Space Development Agency’s existing satellite infrastructure as part of a broader Pentagon effort to create a unified space-based data grid.
Under the rapid prototyping agreement, SpaceX is expected to deliver an operational version of the network by the end of 2027.
While SpaceX is building the core backbone of the system, the Space Force said additional defense and aerospace companies will be brought into the program later this year as the project expands.
The contract marks another major step in the growing militarization of low-Earth orbit, where satellites are increasingly becoming central to communication, surveillance, and modern defense operations.
