SpaceX has requested unusually swift entry into several leading stock market indexes as a condition of its historic stock market debut. But the S&P 500 stock market index representing many of the largest profitable US companies has surprised market analysts by refusing to bend the rules for Elon Musk’s space and AI company.

The June 4 decision by S&P Dow Jones Indices—the company that creates and manages stock market indexes such as the S&P 500—means that SpaceX will not gain accelerated access to potentially billions more dollars through passive investment funds that automatically purchase shares of S&P 500 companies. An exception for SpaceX could have also allowed leading AI companies such as OpenAI and Anthropic to gain entry not long after their own expected initial public offerings (IPOs). That possibility has now been shuttered.

The news will likely come as a relief to people concerned about passive investor money and people’s retirement savings plans having greater exposure to the market risks associated with SpaceX’s big bet on AI and speculative orbital data center plans. AI companies are generally facing more challenges in funding and building expensive AI data centers, even as they shift more of the subsidized costs of running AI services onto shocked customers through usage-based pricing.

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Welcome to Edition 8.44 of the Rocket Report! The news this week is decidedly weighted in favor of heavy-lift rockets, largely due to the fallout from last Thursday's explosion of Blue Origin's New Glenn on its launch pad in Florida. Blue Origin aims to resume launches at the badly damaged launch facility by the end of the year, but there's good reason to be skeptical of this timeline. With New Glenn grounded, will Blue Origin founder Jeff Bezos approach Elon Musk's SpaceX to launch his Blue Moon lander to the lunar south pole? It sure sounds like NASA is pushing for that.

As always, we welcome reader submissions. If you don't want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets, as well as a quick look ahead at the next three launches on the calendar.

Spaceport development moves forward in Canada. There's been a lot of talk about the Canadian government's recent commitment to invest in a sovereign launch capability. There was the announcement last year of a federal budget of 182.6 million Canadian dollars ($131 million) over three years to establish a sovereign launch program. In March, the government said it would lease a dedicated launch pad at a commercially developed spaceport in Nova Scotia for national defense purposes, committing 200 million Canadian dollars ($144 million) to the deal. The agreement is a boon for Maritime Launch Services, which is developing Spaceport Nova Scotia after years of slow progress at the coastal site, SpaceQ reports.

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Critics hope to keep Elon Musk from escaping a strict data-privacy order imposed by the Federal Trade Commission (FTC) shortly before he took over Twitter.

The FTC order placed restrictions on X's data use for 20 years, while requiring regular independent audits and granting the agency authority to request documents as needed to ensure compliance.

The FTC’s action came after Twitter voluntarily disclosed that between May 2013 and September 2019, a coding error accidentally allowed phone numbers and email addresses that users shared for two-factor authentication purposes to be used for targeted advertising aimed at those same users. In a settlement that came just months before Musk's 2022 takeover, Twitter agreed to pay $150 million and to allow the FTC to monitor the platform's data-handling practices until 2042 in order to protect user privacy.

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On Monday, SpaceX amended its initial public offering to state that water conditions—including water scarcity, regulations around water, and drought—could constrain data center development.

It isn’t the only tech company trying to assess how water scarcity might impact its business. Water use is emerging as one of the most contentious data center issues. A recent Gallup poll found that seven out of 10 Americans are opposed to data center development, with water scarcity ranking as the top resource concern. Facing increasingly fierce resistance, some tech companies are scrambling to assure the public that they’re facing the issue head-on.

Data centers primarily use water to cool server racks, which throw off massive amounts of heat. One popular technique, known as evaporative cooling, uses fresh water to absorb the heat, which is then pumped to cooling towers where it evaporates outside.

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