SpaceXAI is facing more than $136 million in mechanic's lien claims tied to construction of its artificial intelligence data centers in the Memphis area, after an Ohio-based contractor alleged it has not been paid for work performed on the company's rapidly expanding Colossus facilities.
The claims, filed in Shelby County, Tennessee, target work performed at the Colossus and Colossus II projects, which are part of Elon Musk's broader effort to build large-scale AI computing infrastructure. The filings have drawn attention not only because of their size but also because they involve one of the highest-profile AI construction projects currently underway in the United States.
According to records cited by the Memphis Business Journal, contractor Darana Hybrid filed two separate liens against SpaceXAI.
The filings seek:
- $18 million for work performed at the original Colossus facility near Boxtown.
- More than $118 million for construction at the Whitehaven project.
Combined, the claims exceed $136 million.
Mechanic's liens are legal claims contractors can file when they allege payment has not been received for labor or materials supplied to a construction project. Filing such a lien does not establish liability or determine that money is owed; instead, it preserves a contractor's legal claim while any dispute is resolved through negotiation or litigation.
IBTimes UK reported that it could not independently verify the allegations contained in the filings. The reports cited did not include a response from SpaceXAI regarding the claims.
The dispute has also highlighted the financial pressures contractors can face when disagreements arise on large infrastructure projects.
Speaking to local broadcaster Action News 5, reporter Dima Amro said Darana Hybrid owner Darryl Cuttell described the personal strain caused by the payment dispute.
"The contractors are alleging they haven't been paid for years of construction work," Amro said while discussing the filings.
She also relayed Cuttell's description of the emotional toll.
"He said he hasn't slept in over four months. He's lost a lot of weight. And he feels like there's no future right now after filing those liens," Amro said.
Those statements reflect Cuttell's personal account and have not been independently verified.
The dispute could also expand beyond Tennessee.
According to Amro, additional lien filings may be forthcoming involving projects across the state line in Mississippi.
"So it looks like more liens are going to be coming to the surface," she said. "About $400 million more worth of liens. I was told that that would be filed in Mississippi for the SpaceXAI facilities there."
No court filings reflecting those additional claims had been cited at the time of the report, and no Mississippi liens had been publicly confirmed.
Other contractors have also asserted payment disputes connected to the same developments.
According to the reporting, USW-Menard Inc. and TorcSill Foundations have filed separate liens totaling more than $2.2 million related to work performed on SpaceXAI data-center projects.
