Could SpaceX's orbital compute avoid the political headwinds facing data centers?

Investing.com -- Evercore ISI told investors in a note Thursday that mounting political opposition to data centers has become bipartisan, and that SpaceX's plans for orbital compute look increasingly attractive against that backdrop.

Analyst Kutgun Mural pointed to Texas pausing as many as 1,800 projects pending audits and Pennsylvania withholding permits until developers secure every local approval.

Polling now shows 75% of Americans would oppose a data center built near them, up from 42% a year earlier.

Heading into the midterms, the firm framed the issue as a headline risk rather than an estimate risk. "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.

On the terrestrial side, Evercore said SpaceX screens well against the tests states are now writing, generating power behind the meter and pledging to fund the grid upgrades its facilities require so households do not bear the cost.

That advantage is seen as relative rather than absolute, the firm cautioned, noting issues at Southaven show the company can still face permitting, emissions and environmental-justice opposition.

For orbital compute, Evercore said the backlash strengthens the case. "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, estimating no need for added terrestrial capacity beyond 2029.

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