The financial dispute Darrell Cuttell says stems from unpaid work on Elon Musk-affiliated data center projects is now reaching into the drag racing world.
CompetitionPlus reported over the weekend that Cuttell’s company, Darana Hybrid, filed mechanic’s liens alleging more than $136 million in unpaid work connected to data center construction in the Memphis area. Now, according to an interview with Action News 5 in Memphis, the IHRA owner says the dispute has forced him to indefinitely suspend redevelopment of Darana Motorsports Park and consider selling IHRA assets.
Action News 5 reported Tuesday that Cuttell said Darana Hybrid helped build two Memphis-area data centers before payments allegedly stopped earlier this year following the merger of xAI and SpaceX.
“It was running smoothly until April when the new regime stepped in and just ruined it all,” Cuttell told Action News 5. “Probably north of $600 million is owed to my company.”
According to Action News 5, Cuttell said Darana Hybrid has filed liens against companies identified as CTC Property and MZX Tech related to work performed on the Memphis projects. He also told the television station he plans to pursue an additional lien involving work at a Southaven, Miss., facility.
CompetitionPlus has not independently verified Cuttell’s allegations or the amounts he claims are owed.
For drag racers, the most immediate impact appears to be in Millington, Tenn., where Cuttell had announced plans earlier this year to transform the former Memphis Motorsports Park into Darana Motorsports Park.
Action News 5 reported the redevelopment project has now been placed on indefinite hold because of the ongoing financial dispute.
Cuttell also told the station he is evaluating the sale of IHRA properties to meet financial obligations.
“I’ve never been treated so unfair for doing such a good job,” Cuttell told Action News 5. “I overextended myself, gave him everything he wanted, and now I’m getting trashed. I gotta be careful. I don’t know if I can go fight them. I mean, it’s pretty hard to fight the richest man in the world.”
The development comes less than a month after IHRA announced it was canceling the remainder of its 2026 Nitro Series schedule, citing operational challenges while saying its member-track and sportsman racing programs would continue.
Action News 5 also reported that the Millington Chamber of Commerce remains hopeful the redevelopment project can move forward.
“We certainly hope the challenges surrounding the project can be resolved and that the development will have an opportunity to move forward,” Millington Chamber Executive Director Chris Thomas said in a statement published by Action News 5.
According to Action News 5, SpaceXAI did not respond to the station’s multiple requests for comment.
