Musk announces two new Mississippi data centers amid concerns with traffic, construction and resources

Musk announces two new Mississippi data centers amid concerns with traffic, construction and resources

News ClipMagnolia State Live·Southaven, DeSoto County, MS·11/6/2026

SpaceXAI is building two additional data centers in Southaven, Mississippi, bringing its Memphis-area total to six facilities. The expansion is expected to generate significant tax revenue, but nearby businesses report traffic and construction problems while advocates seek information about the sites' electricity and water consumption.

announcementenvironmentaloppositionelectricitywater
Gov: City of Southaven, DeSoto County, Memphis Light, Gas and Water, Southaven municipal government

SpaceXAI is constructing two data centers on Tulane Road in Southaven, Mississippi, at sites code-named Gun Range and Spam. The facilities are expected to begin operations in November and December, respectively, expanding the company’s Memphis metropolitan footprint to six locations.

Southaven Mayor Darren Musselwhite said the projects could produce an estimated $63 million in annual tax revenue for the city, DeSoto County and local schools. He also said SpaceXAI is offering buyouts to more than 400 nearby homeowners and businesses affected by noise or industrial activity.

Local business owners report that construction activity and commuter traffic have caused dust, congestion and clogged intersections along Stateline Road. Environmental advocates are also seeking records from Memphis Light, Gas and Water concerning the facilities’ substantial electricity and water use.