SpaceX Overhauls Data Center Buildout as UK Spends Nearly $40 Million on Satellite Services

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SpaceX is overhauling how it builds its data centers, a shift that could slow the pace of new construction, according to a report from The Information. A new management team drawn from the company's rocket division is prioritizing reliability over speed, installing more backup power and cooling systems and testing them more thoroughly before data centers go live, a departure from the rapid buildout of the Colossus campus in Tennessee, where xAI brought its first data center online in just 122 days. That speed brought trade-offs including frequent outages, and a construction-related outage at the Memphis facility last week knocked some Grok models offline and affected compute customers including Anthropic and Google. More than a dozen data-center leaders have left in recent weeks and been replaced by SpaceX engineers, and CEO Elon Musk wrote on X after the outage that the company was taking corrective action to ensure it does not happen again. Separately, Reuters reported that the UK has spent nearly $40 million on SpaceX satellite services, including around $17.6 million on Starshield, the military-grade version of Starlink with enhanced encryption, and $22.3 million on standard Starlink, deploying about 1,000 Starshield and 500 Starlink terminals, making the UK the first country outside the US to publicly acknowledge using Starshield. The gains came as SpaceX absorbed new share supply, with about 319 million insider shares, around 7% of insider stock, becoming eligible for sale on Wednesday, the 90-day mark since SpaceX's June 12th IPO. SpaceX went public at $135 a share in June, raising a record $85.7 billion at a $1.77 trillion valuation while floating less than 5% of its stock.

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Artificial Intelligence · 3 stocks
Space Economy · 1 stocks

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AnthropicPrivate± Mixed
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The InformationPrivate± Mixed
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