SpaceX has received a contract from the U.S. Space Force for $2.29 billion. The company has been tasked with deploying the military satellite network Space Data Network Backbone, or simply SDN Backbone.
The network is needed so the military can exchange data faster between satellites and other systems in orbit. SpaceX is expected to present the first working prototype by the end of 2027.
The project plans to use satellites with laser communication instead of standard radio channels. This format is better suited for military tasks: it’s faster, and the network itself is less vulnerable if some satellites stop working.
Elon Musk and SpaceX to Build Military Satellite Network for U.S.
SDN Backbone is part of a larger Pentagon program to upgrade military communications and missile defense systems.
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The network is expected to become part of the defense architecture Golden Dome. Its purpose is to connect satellites, sensors, and intercept systems in real time.
For SpaceX, this is far from the first contract with the U.S. military, but the scale of cooperation continues to grow. The company is becoming increasingly entrenched in projects related to communications, satellites, and U.S. defense infrastructure.
And it’s no longer just a single order. The U.S. Space Force plans further investments in the Space Data Network, with additional billions of dollars to be allocated in the coming years.
Which Stocks Could Benefit?
While the market discusses a possible SpaceX IPO, investors’ attention is gradually shifting toward public companies connected to space and defense. The more the U.S. spends on satellites, missile defense systems, and secure communications, the greater the interest in this sector.
Some companies may benefit directly through new contracts. Others will gain from increased investor interest in the sector where space, defense, and government spending intersect.
| Company | Ticker | Why It Could Benefit |
| Rocket Lab | RKLB | Strong position in military satellites and space launches |
| Northrop Grumman | NOC | Major defense contractor with satellite communications projects |
| Lockheed Martin | LMT | Could benefit from Golden Dome missile defense programs |
| RTX Corporation | RTX | Supplies missile defense and military communications systems |
| Boeing | BA | Holds major Pentagon space and defense contracts |
| L3Harris Technologies | LHX | Specializes in military communications and tactical systems |
| Viasat | VSAT | Provides satellite communications for the defense sector |
| Iridium Communications | IRDM | Operates global satellite communications networks |
| Firefly Aerospace | FLY | Expanding military space systems and missile defense |
| York Space Systems | YSS | Builds satellites for U.S. Space Force projects |
Rocket Lab shares rose more than 13% in a week. Source: Google Finance.
Growing Arms Race in Space
The Space Data Network project shows how U.S. military strategy is changing. The Pentagon no longer wants to rely on a few expensive satellites, the loss of any of which could be a serious problem. Instead, the U.S. is moving to networks of many small devices linked together.
The idea is for data to be transmitted faster, and for the system to keep working even if individual satellites are attacked. If one device fails, the network shouldn’t collapse.
For American defense, satellite, and aerospace companies, this could be a long-term growth story, not just a one-off contract.
