Elon Musk Replaces SpaceX Data Center Chiefs After Reliability Issues at $2.6 Billion Unit

Jake Palmer, the physical infrastructure lead for SpaceXAI, left the company in July along with several other data center executives. Elon Musk installed leaders from SpaceX’s rocket and Starbase operations to oversee the team after reliability issues surfaced at facilities in Tennessee and Mississippi. Some of those sites operated for months without backup cooling or power systems, per The Information.

Compute rentals generated $2.6 billion in AI revenue last quarter as the company aims for more than 2 GW of capacity by year end. SpaceX had approximately 1.4 GW online as of June, but the company has since pushed back timelines for new data centers in Texas and other regions outside Memphis.