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US Space Force Awards SpaceX $2.29 Billion Contract for Military Space Data Network

SpaceX will build a secure satellite backbone that links military sensors and weapons systems, with a fully operational prototype due by the end of 2027.

  • On Tuesday, the U.S. Space Force awarded SpaceX a $2.29 billion contract to build the Space Data Network Backbone, a secure satellite communications network designed to connect military sensors and weapons platforms globally using Starshield satellites.
  • The Pentagon restructured satellite acquisition efforts before Tranche 3 procurements, shifting emphasis toward the Space Data Network, consolidating major future satellite work under SpaceX compared to earlier Transport Layer acquisitions distributed across multiple vendors.
  • Military officials prioritize the network because missile-tracking satellites can rapidly transmit targeting data through orbital relay networks to command systems with minimal delay; Space Force Colonel Ryan Frazier, acting portfolio acquisition executive, said it 'leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set.'
  • SpaceX must deliver a fully operational prototype by the end of 2027, while the Space Force plans to identify additional contractors this summer for satellite construction and will integrate the backbone with the Space Development Agency's Transport Layer constellation.
  • The Trump administration's fiscal year 2027 budget request includes nearly $1.5 billion in research and development funding for the SDN Backbone plus $2.38 billion in procurement funding, as the Space Force established an SDN consortium to coordinate interoperability standards among participating vendors.
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SpaceX is building a satellite network that will connect military sensors and weapons platforms around the world.

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Channel News Asia broke the news in Singapore on Tuesday, May 26, 2026.
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