TLDR
- SpaceX is overhauling its data center build-out, now focusing on backup systems, cooling, and thorough testing before going live
- The new approach could slow expansion and hinder revenue growth
- SpaceX suffered a recent data center outage, prompting Musk to promise “corrective action”
- The company rents computing capacity to Anthropic, Google, and others, making data centers a key revenue source
- Goldman Sachs expects SpaceX’s AI-related revenue to jump from $3.2B to $322B by 2030
SpaceX (SPCX) stock rose 1.6% in morning trading Wednesday after The Information reported the company is overhauling how it builds its data centers, a shift that could slow expansion.
Space Exploration Technologies Corp., SPCX
The change comes after SpaceX recently replaced its data center management team with engineers from its rocket and Starlink operations, following reliability problems and engineering concerns.
The new team is now prioritizing backup systems, cooling infrastructure, and full testing before data centers go live. Previously, those systems were bolted on after the centers were already operating.
SpaceX is also looking at redesigning portions of its existing data centers, according to two people familiar with the matter cited by The Information.
The company operates the Colossus data center campuses in Tennessee and Mississippi. Colossus 1 launched in July 2024 and took about four months to build. Work on Colossus 2 began in March 2025.
A Recent Outage Added Pressure
Earlier this month, one of SpaceX’s data centers went offline. Elon Musk posted on X that the company was “taking corrective action to ensure this does not happen again.”
That outage appeared to accelerate the decision to rethink how the centers are built and staffed.
SpaceX did not respond to a request for comment from Seeking Alpha.
The data centers have become a meaningful revenue stream. SpaceX has rented out computing capacity to Anthropic (ANTHRO), Google (GOOG, GOOGL), and struck a deal with Reflection in June.
Wedbush Securities has said those rental deals could be a precursor to another large Colossus-scale build-out.
Revenue Stakes Are High
Goldman Sachs said in June that it expects SpaceX’s AI-related revenue to jump 100 times, from $3.2B in 2025 to $322B by 2030.
That projection makes the pace of data center expansion a closely watched metric for investors.
AI revenue at SpaceX also includes its Grok chatbot and related services.
In 2025, SpaceX posted total revenue of $18.7B. The majority of that came from Starlink, its satellite internet business.
The data center business, while smaller today, is growing fast and drawing attention from Wall Street.
SpaceX is also reportedly exploring a data center expansion into Texas, and Musk has publicly floated the idea of putting data centers into space.
Any sustained slowdown in build-out pace could delay revenue targets that Wall Street has built into its long-term models.
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