SpaceX replaced its AI data center leadership with executives from its rocket and satellite divisions. This reorganization follows reports of significant reliability and civil engineering concerns at facilities in Tennessee and Mississippi.

The Tennessee and Mississippi sites reportedly operated for months without adequate backup power or cooling systems. These facilities were rushed into operation, leading to the current management shake-up.

New leadership is implementing a conservative approach focused on robust backup systems and testing. This strategic shift will slow construction as SpaceX faces a looming deadline for a high-value compute contract with Google.