Company that helped SpaceXAI rapidly build data center is suing for $432.5M in unpaid wages

Company that helped SpaceXAI rapidly build data center is suing for $432.5M in unpaid wages SpaceXAI has sued Darana Hybrid in return - Bookmark - CommentsGo to comments A contractor who helped to build data centers for Elon Musk is now suing SpaceXAI I for hundreds of millions in unpaid wages. Darana Hybrid Inc claims Musk's company owes $432.5 million for unpaid work. The lawsuit was filed on August 6 and seeks $136.8 million in damages. The work at the center of the lawsuit occurred at four sites in Mississippi. SpaceXAI is also suing Darana Hybrid, claiming its CEO, Darryl Cuttell, was engaged in a fraud scheme to help him fund “out-of-scope work on hot rod projects.” It claims Darana Hybrid withheld tens of millions of dollars in payments to vendors and suppliers in an effort to force SpaceXAI to pay up. The plaintiffs in that case have requested a trial and are demanding Darana pay at least $500 million in damages, plus mitigation costs, punitive and statutory damages, and court costs. Cuttell said that his company had a solid working relationship with xAI before it was merged with SpaceX earlier this year. He said once the merger occurred, he stopped getting paid. The day after Cuttell made public comments about the money he is allegedly owed by Musk's company, SpaceXAI and its two subsidiary companies sued him. Cuttell bought the International Hot Rod Association last year and planned to start major renovations at the Memphis Motorsports Park in Millington, which has since been renamed the Darana Motorsports Park. He told Action News 5 that the project had to be on indefinite hold and that he is considering selling off IHRA properties to pay his bills. Darana isn't the only entity to drag SpaceXAI into a court case relating to data centers. Both the NAACP and Southern Environmental Law Center sued SpaceXAI over the use of gas turbines without permits at its Colossus data center in Memphis, Tennessee. The Department of Justice sided with SpaceXAI in that lawsuit, ruling that the turbines in question were a matter of "national, economic, and energy security," Tech Crunch reports. Musk, the company's founder, is an ally of President Donald Trump and ran the short-lived and deeply contentious Department of Government Efficiency. In late July, SpaceXAI said that it planned to remove the permit-less gas turbines and transition to 1.2 gigawatt natural gas power plants for its data center energy needs. While that will solve the issue of permitting, it won't do so for nearly a year. According to SpaceXAI, the 69 gas turbines powering the data center won't be completely removed until next July. The Independent has requested comment from SpaceXAI and Darana Hybrid. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments