SpaceXAI to build 2 more AI data centers in Southaven

SpaceXAI to build 2 more AI data centers in Southaven

News ClipAction News 5·Southaven, DeSoto County, MS·11/6/2026

SpaceXAI is building two additional AI data centers in Southaven, Mississippi, near its existing campus and power plant, bringing its Memphis-area total to six. The expansion is generating major tax revenue but has also caused traffic and business disruptions, while activists seek information about the facilities’ water, electricity and gas consumption.

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Gov: City of Southaven, DeSoto County, DeSoto County Schools, Memphis Light, Gas and Water Division

Elon Musk said SpaceXAI is constructing two more data centers on Tulane Road in Southaven, near the company’s existing facilities and power plant. The Gun Range facility is expected to begin operating in November, while the Spam data center is projected to come online in December, bringing the company’s Memphis-area total to six.

Southaven Mayor Darren Musselwhite said the development generates about $63 million annually for the city, DeSoto County and DeSoto County Schools. He also said SpaceXAI is offering to purchase more than 400 nearby homes and businesses in response to concerns about noise and pollution.

Some local businesses report that congestion associated with the campus is hurting customer traffic. Environmental advocates, including Protect Our Aquifer Executive Director Sarah Houston, are seeking utility records from Memphis Light, Gas and Water to determine the facilities’ water and power use, while the broader environmental impact of the expansion remains uncertain.