Space Force Awards SpaceX $2.29 Billion SDN Backbone Contract — Military Satellite Data Network Built on Starshield

The U.S. Space Force awarded SpaceX a $2.29 billion Other Transaction Authority (OTA) agreement on May 27, 2026 for the Space Data Network (SDN) Backbone — a military satellite communications network built on SpaceX's government-focused Starshield platform (a classified variant of Starlink). SpaceX is required to deliver a 'fully operational prototype' by end of 2027. The SDN Backbone is designed to serve as the foundation of the Pentagon's future space-based communications architecture, providing secure, high-speed, low-latency data transport for military forces worldwide. The network will integrate with the Space Force's Transport Layer Tranche 1 and Tranche 2 assets in a unified and open architecture. SpaceX's Starshield satellites are hardened versions of Starlink V2 Mini spacecraft with additional encryption and processing capabilities for classified government workloads. The award arrives two days before a separate $4.16 billion SB-AMTI contract from the Space Force (awarded May 29) — bringing SpaceX's total new Space Force contract awards for the week of May 26-30 to over $6.45 billion, the largest such weekly total in SpaceX's history. The combined contracts reinforce SpaceX's expanding role as the primary commercial provider for US military space infrastructure, and add national security revenue context to the company's Nasdaq (SPCX) IPO targeting a $75–80 billion raise on June 11–12.