Data center builder sues SpaceXAI for $432.5M in unpaid wages

Data center builder sues SpaceXAI for $432.5M in unpaid wages

News ClipThe Independent·Memphis, Shelby County, TN·8/13/2026

Data center builder Darana Hybrid Inc. is suing SpaceXAI for $432.5 million in unpaid wages related to data center construction in Mississippi, while SpaceXAI has filed a counter-suit alleging fraud. Separately, SpaceXAI is facing an environmental lawsuit from the NAACP and Southern Environmental Law Center regarding unpermitted gas turbines at its Colossus data center in Memphis, Tennessee, prompting plans to transition to natural gas power plants.

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Gov: Department of Justice

Darana Hybrid Inc., a contractor involved in building data centers for Elon Musk's company, SpaceXAI, has filed a lawsuit seeking $432.5 million in unpaid wages. The lawsuit, filed on August 6, claims $136.8 million in damages for work performed at four sites in Mississippi.

SpaceXAI has responded by filing its own lawsuit against Darana Hybrid, alleging that its CEO, Darryl Cuttell, orchestrated a fraud scheme to fund