The new Space Data Network contracts will support an in-orbit demonstration designed to connect satellites through faster and more secure optical communications
Long Beach, California, 31 August 2026 – Rocket Lab is expanding its role in the growing space communications industry after securing two contracts worth a combined $12 million from the U.S. Space Force. The agreements will support the company’s work on the Space Data Network Backbone, a program focused on building a secure, high-speed satellite communications network.
The contracts will allow Rocket Lab to design, test, and demonstrate technologies that help different satellite systems communicate with one another. A major part of the project will involve secure optical communications, a technology that uses light to transfer information between space systems. Rocket Lab is expected to conduct an operational demonstration in 2027.
In simple terms, the project is about creating a more connected network in space. Instead of relying on individual satellite systems that operate separately, the Space Data Network is designed to allow different satellites and ground systems to exchange information through a shared communications architecture.
Rocket Lab plans to use one of its Photon spacecraft for the in-orbit demonstration. The spacecraft will be equipped with optical and networking capabilities intended to show that different systems can work together securely and efficiently.
Optical communications are becoming increasingly important as the amount of data moving through space continues to grow. Traditional radio frequency systems remain widely used, but optical links can offer higher data rates and lower latency in certain applications. They can also provide a potential way to move large volumes of information between satellites and ground stations.
The Space Data Network initiative is designed around a multi-vendor approach. The U.S. Space Force has selected several commercial space companies to demonstrate how different satellite systems can connect through common standards. Rocket Lab is among five companies selected for this work, alongside Amazon LEO for Government, Lockheed Martin, Northrop Grumman and York Space Systems.
This approach could make future space communications infrastructure more flexible. By establishing common physical, electrical and data interfaces, satellite operators may be able to introduce new spacecraft and technologies without having to redesign an entire network for every new system.
For Rocket Lab, the contract also highlights the company’s expansion beyond launch services. The company has developed capabilities across satellite manufacturing, spacecraft systems and on-orbit operations, allowing it to participate in several stages of a space mission.
The company’s involvement comes as governments and commercial space organizations place greater emphasis on resilient satellite communications and high-capacity data networks. Modern spacecraft generate and transmit increasing amounts of information, creating demand for communications systems that can move data quickly and reliably.
The $12 million award is focused on technology development and demonstration rather than a large-scale production contract. However, successful testing could create opportunities for Rocket Lab to compete for additional work as the Space Data Network develops.
The planned 2027 demonstration will therefore be an important milestone. If the technology successfully shows that different satellite systems can communicate through a secure and standardized architecture, it could help establish a foundation for a more connected space communications environment.
For Rocket Lab, the project represents another step into advanced space infrastructure. For the wider industry, it reflects a growing focus on optical communications, interoperable satellites, and high-speed data networks that could shape the next generation of space technology.
