The U.S. Space Force has awarded SpaceX a $2.29 billion contract to build a new military satellite constellation called the Space Data Network Backbone. The system will use advanced encryption and inter-satellite laser links to securely shuttle sensitive military data at high speed in low Earth orbit.
Under the firm-fixed-price agreement, SpaceX must deliver a fully operational prototype by the end of 2027. The technology builds on the company's Starshield division, which adapts commercial Starlink technology for national security. Laser crosslinks allow satellites to communicate directly in space, reducing latency and eliminating vulnerabilities associated with ground relay stations.
This follows a $57 million crosslink demonstration contract awarded in April 2026. Combined with a prior $1.8 billion National Reconnaissance Office contract, SpaceX now holds over $4 billion in major military satellite awards. The contract aligns with the Space Force's MILNET vision for hybrid mesh networks integrating commercial and government assets.