Is there a library or custom factions somewhere or do they need to be loaded one at a time via steam? I have heard of people playing large games with nearly a hundred or more AI players.
At the screen where you can choose factions is a button for the Steam Workshop. There you will find oodles of factions and ships to "subscribe" to. That will download those elements and make them part of your next game. There you will find factions of all flavors, silly, serious, and everything in between. The ship designs are worth checking out, too. There is a lot of imagination and skill on exhibit there. There is a Steam Workshop button in the Ship Designer as well, but it takes you to the same place on Steam.