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SpaceX Wins $2.29B Contract for Space Data Network

January 4, 2026

2 min read

Key Takeaways

SpaceX wins $2.29 billion contract for Space Data Network.
Network will provide space-based sensing and targeting data.
Based on Starlink technology, with Starshield satellites.
Delivery expected by end of 2027.

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Strategic Implications

This award may indicate the US Space Force's preference for leveraging commercial innovation in its communications networks. The selection of SpaceX suggests a shift towards a more integrated and resilient network, which could enhance the military's sensor-to-shooter capabilities and may set a precedent for future space-based communications procurements.

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What Happened

US Space Force Awards Firm-Fixed-Price Agreement For Sensor-To-Shooter Targeting

The US Space Force has awarded SpaceX a $2.29 billion firm-fixed-price agreement to build the Space Data Network, a sensor-to-shooter targeting network in low-Earth orbit. The network will be based on technology developed for SpaceX’s Starlink global Internet constellation and will utilize the company’s Starshield satellites. According to Space Systems Command, the network will provide a resilient, high-speed communications network in space, enhancing the military’s ability to connect sensors and shooters globally and securely. The contract was reported by Ars Technica.

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