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SpaceX wins $2.3B US Space Force contract to develop military satellite system

SpaceX (Unlisted (US):SPACEX) has been awarded a $2.29 billion fixed-price contract by the US Space Force to develop the Space Data Network (SDN) Backbone, a low-Earth orbit satellite communications system intended to support secure, high-speed data transfer for US military operations.

The program is designed to create a resilient, optically interconnected satellite constellation that will serve as a core communications layer for the Pentagon’s broader “Golden Dome” missile defense architecture.

According to the Space Force, the network will enable near real-time connectivity between global sensors and weapons platforms, improving data sharing for missile tracking, warning systems, and other defense applications.

Under the terms of the Other Transaction Authority (OTA) agreement, SpaceX is required to deliver a fully operational prototype capability by the end of 2027.

The Space Force said the SDN Backbone will function as a proliferated low-Earth orbit (pLEO) constellation providing high-capacity, low-latency data transport across the Joint Force.

It described system as a key component of an evolving hybrid space-based data network, working alongside the Space Development Agency’s Transport Layer. Together, these systems are intended to form a unified architecture to support global military communications and sensing operations.

“The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set – a huge benefit and enabler for our warfighters,” said USSF Colonel Ryan Frazier, acting Space Force portfolio acquisition executive for Space-Based Sensing and Targeting

“The SDN Backbone supports the broader SDN, which acts as a core communications layer for the USSF warfighting systems, ensuring our sensors and shooters are connected continuously, globally and securely.”