Memphis Contractor Says Musk Companies Owe Him $600M for Data Center Work
Darryl Cuttell, CEO of Ohio-based mechanical contractor Darana Hybrid, says Elon Musk’s companies owe his firm more than $600 million for work performed on Memphis-area data centers, Action News 5 reports. Cuttell has filed liens against CTC Property and MZX Tech, two entities Musk uses to manage supercomputer operations tied to xAI in the region.
Darana helped convert a former Electrolux factory on Paul Lowry Road in Southwest Memphis into Musk’s first Memphis data center in 2024, completing the build in 123 days, and later worked on a second site on Tulane Road in Whitehaven. Cuttell said the relationship stayed solid until xAI merged with SpaceX earlier this year, after which invoices stopped getting paid. He filed liens last week seeking $118 million for the Tulane Road site and $18 million for the Paul Lowry Road location, and said he plans to file a further $400 million lien for unpaid work at a Southaven, Mississippi plant.
Cuttell says the payment dispute has forced him to put an unrelated motorsports park renovation on indefinite hold and consider selling assets to cover his own bills. He joins a growing list of contractors, including at Musk’s Boring Company and Tesla, who have alleged non-payment for completed work. SpaceXAI did not respond to requests for comment.
What It Means for Subcontractors
- Mechanical, electrical, and structural subs bidding on hyperscale AI data center work for well-capitalized owners should still negotiate strict payment milestones and lien rights up front. Scale and speed of buildout are not a substitute for reliable receivables.
- Contractors working under fast-track conversion schedules, like the 123-day Electrolux factory retrofit, carry outsized cash-flow exposure if a prime client’s ownership structure changes mid-project, as happened here after the xAI/SpaceX merger.
- Firms with concentrated exposure to a single hyperscale client should watch this dispute closely. A $600 million receivable is large enough to threaten unrelated business lines, as it has for Cuttell’s motorsports investments.
- Expect increased scrutiny from subcontractors and suppliers on any future Musk-affiliated data center RFPs in the Mid-South, potentially slowing procurement until the lien disputes resolve.
