SpaceX Slows Data Center Build-Out to Prioritize Reliability

After Memphis outages disrupted Grok and compute customers, SpaceX replaced xAI-led data-center management with engineers from its rocket and Starlink divisions. The new focus on backup power, redundant cooling and testing could slow new capacity coming online.

• SpaceX replaced xAI-led data-center management with rocket and Starlink engineers
• Memphis outages disrupted Grok models and compute rental customers
• Reported compute contracts are worth over $2 billion per month
• Target is more than 2 GW of AI capacity by end of 2026