Southaven approves new SpaceXAI data center, fifth location in area
The Southaven Board of Aldermen has approved plans for a new xAI data center on a 51-acre site, converting an old city training facility. This marks xAI's fifth data center in the Memphis and north Mississippi area. The approval faced objections from an alderman over xAI's unfulfilled past commitments, including ongoing noise from temporary turbines.
The Southaven Board of Aldermen has granted approval for xAI to construct a new data center on a 51-acre parcel, previously the city's training facility on Tulane Road. This 660,000-square-foot facility will mark xAI's fifth data center presence in the Memphis and North Mississippi region, situated adjacent to a power plant the company is currently developing on Stanton Road.
However, the approval was not unanimous, with Ward 2 Alderman Charles Hoots expressing concerns on behalf of his constituents. Hoots criticized xAI for failing to complete prior projects and fulfill past commitments, specifically citing persistent noise issues from temporary turbines that have received an extension.
The land for the new data center was acquired through a land swap agreement with Southaven, which also saw xAI provide $40 million towards the construction of a new city training facility. Neighboring DeSoto County city, Olive Branch, recently adopted more stringent regulations for data center project approvals, highlighting broader regional discussions on development.