USSF Gives SpaceX $2.29 Billion for ‘Backbone’ of New Data Network

Space Systems Command has awarded a massive $2.29 billion contract to SpaceX for the “backbone” of its new Space Data Network, a constellation of satellites in low-Earth orbit that will provide connectivity for the entire joint force.

SDN is the Space Force’s new program to transport data from sensors to shooters around the globe, combining both military and commercial satellites to manage both tactical and enterprise communication needs. The “SDN Backbone” was previously a joint Space Force-National Reconnaissance Office effort called MILNET.

MILNET emerged in Space Force budget documents last year, and the service never released many details. Media reports at the time, however, indicated that SpaceX was the sole contractor with its militarized “Starshield” satellites based on its ubiquitous Starlink spacecraft.

In a May 26 release, Space Systems Command described the new Backbone as an “integrated network, providing robust, resilient, high-capacity, and low-latency data transport … delivering worldwide tactical communications and broadband communication services.”

The release also states SpaceX must deliver a “fully operational prototype capability by the end of 2027.” The command could not immediately say if that will include new satellites being launched or using existing spacecraft on orbit. Space Force budget documents indicate the service plans to buy 13 satellites for SDN in 2026 and 21 in 2027.

SSC says the deal with SpaceX was a competitive award. The command could not immediately say if it received other proposals, but a Space Force spokesperson previously told Air & Space Forces Magazine the service wants to “galvanize the U.S. industrial base to meet Space Force proliferation needs,” and that identifying a second contractor to build SDN satellites—as well as other elements of the architecture—is part of that.

In a statement, SDN Backbone system program manager Lt. Col. Jeffrey Fry said competition remains a key part of the effort.

“Our acquisition strategy is designed to foster competition and broaden our industrial base,” said Fry. “We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible.”