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SpaceX Wins $2.29B Military Contract for Space-Based Targeting Network

Ars Technica •
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The US Space Force awarded SpaceX a $2.29 billion contract to build the Space Data Network Backbone, a communications system designed to connect military sensors and weapons platforms in low-Earth orbit. This firm-fixed-price agreement accelerates deployment of a resilient, high-speed network after previous Pentagon initiatives failed to deliver results. The system forms the core communications layer for unified space-based operations.

Space Systems Command confirmed the network leverages technology from SpaceX's Starlink constellation and uses the Starshield satellite platform already built for military applications. An optically interconnected mesh of satellites will provide worldwide tactical communications and broadband services, ensuring continuous global connectivity for military assets. Officials say this approach combines commercial innovation with military requirements.

The contract follows years of development challenges at the Space Development Agency, which launched prototype satellites in 2023 after its 2019 formation. That agency aimed to rapidly field tracking and data-relay satellites every two years across multiple vendors, but progress stalled. Col. Ryan Frazier called the new network a 'huge benefit and enabler' for connecting sensors directly to shooters across global battlefields.

This award signals growing military reliance on commercial space technology for critical infrastructure. By adapting Starlink's proven architecture, the Space Force gains rapid deployment capabilities while avoiding traditional procurement delays. The optically connected constellation represents a shift toward more agile, commercially-derived military systems.