Source : The Verge (AI-generated image)
SAN DIEGO, November 4, 2026 – Qualcomm expects data centres to eventually make up around 30% of its business as it looks beyond a weak smartphone market, while also signing a multi-year deal to supply technology for SpaceX’s planned Starlink Mobile 5G network in the United States, as reported by The Verge.
The chipmaker set out its data centre plans during its earnings call for the fourth quarter of its 2026 financial year. According to The Verge, smartphone sales have fallen by around 20% compared with 2025, pushing Qualcomm, best known for the processors and modems inside many Android phones, to look for growth in the artificial intelligence (AI) data centre market.
From US$650 million to US$15 billion
The company forecast around US$650 million in data centre revenue in the first quarter of 2027, but said it expects that figure to reach US$5 billion by the end of 2027 and US$15 billion by 2029. Its push into the sector builds on partnerships with companies such as Amazon and Meta that were announced earlier this year.
Qualcomm’s total revenue for 2026 was US$10.4 billion, The Verge reported, meaning the data centre targets would represent a significant share of its earnings if they are met. The company confirmed on the call that it expects data centres to account for around 30% of its business in the long run.
The Verge noted that the goal is less ambitious than that of AMD, which says it expects more than 80% of its revenue to eventually come from data centres, but said it shows there is still strong demand for AI computing to be met.
Building Starlink Mobile’s ground network
In a separate announcement, SpaceX said it is teaming up with Qualcomm to build out its nationwide mobile network. Under the multi-year agreement, SpaceX will bring Qualcomm’s Dragonwing technology to “tens of thousands” of 5G cell sites across the US, with the first deployments planned for 2027. Qualcomm described the agreement as its biggest 5G deal yet, Reuters reported, but did not disclose its financial terms.
SpaceX plans to use Qualcomm’s Dragonwing Cellular Infrastructure, a platform of hardware and software designed to improve network coverage, capacity and efficiency, and combine it with its constellation of direct-to-cell satellites.
The partnership is part of SpaceX’s effort to turn Starlink Mobile into a “major” US carrier that competes directly with T-Mobile, AT&T and Verizon. The Verge said the company has already acquired a large amount of spectrum, while recent reports suggested it had explored buying Boost Mobile.
“Together with SpaceX, we are building world-leading cellular infrastructure in the United States, advancing 5G today,” said Durga Malladi, Qualcomm’s executive vice president and general manager of technology planning, edge solutions and data centre. He added that the two companies have an opportunity to “lay the foundation” for 6G in the coming years.
Taken together, the two announcements show Qualcomm trying to reduce its reliance on phone chips by expanding into AI data centres and network infrastructure, two areas where spending is rising. Investors will be watching whether the company can turn its data centre forecasts into actual sales, and how quickly the SpaceX network rollout gets under way once deployments begin in 2027.
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