SpaceX Reassigns 300 Engineers to Enhance AI Data Center Operations

SpaceX has reallocated more than 300 engineers from its rocket and Starlink divisions to its AI data center operations, indicating the company's serious approach to enhancing its computing infrastructure. This staffing change followed an internal call for volunteers that attracted over 1,300 applicants, with only a fraction selected.

The engineering influx is part of a broader management shakeup initiated in late June 2026, which included the replacement of data center team lead Dan Rowland with Wesley Salandro, a veteran from SpaceX’s rocket production operations. The current focus is on addressing reliability challenges at the Memphis-area Colossus campus, which has faced issues due to rapid growth.

SpaceXAI currently operates approximately 1.4 GW of computing capacity, with plans to exceed 2 GW by the end of 2026. The newly assigned engineers are prioritizing the development of redundancy in power and cooling systems, implementing rigorous testing protocols, and moving away from temporary infrastructure that was only suitable during the initial construction phase.

Despite plans for expansion outside the Memphis region, the company is opting to stabilize its existing operations before scaling further. This urgency is underscored by SpaceXAI's impressive revenue generation, with $2.6 billion in external compute rental revenue reported in the second quarter of 2026. Collaborations with major firms like Google and Anthropic highlight the importance of reliability improvements in maintaining and expanding these partnerships.

Additionally, this data center initiative aligns with SpaceX's long-term vision for orbital computing infrastructure, with plans to ramp up satellite production for orbital data centers by 2027.