SOUTHAVEN, Miss. — SpaceXAI is adding two new data centers to its growing campus in Southaven, a move that city officials say will bring unprecedented tax revenue to the community.
New facilities and timelines
Elon Musk confirmed that the two facilities are under construction on Tulane Road. One, dubbed “Gun Range,” occupies the former city training site and is slated to become operational in November. The second, called “Spam,” is being built in the old Hormel building and should be online by December.
When completed, Southaven will host four SpaceXAI sites: the newly announced Gun Range and Spam centers, the Macrohardrr campus near the company’s power plant on Stanton Road, and the existing Macrohardrr facility across the state line. Combined with the three Memphis‑area centers—Colossus 1 in South Memphis, Colossus 2 (nicknamed Macrohardrr) in Whitehaven, and Minihard next door—there will be six SpaceXAI data centers operating in the Memphis metro area.
Economic impact
Mayor Darren Musselwhite praised the development, noting that the campus‑type expansion is projected to generate about $63 million a year for DeSoto County schools, DeSoto County itself, and the City of Southaven. “We knew it would be expanding in a campus‑type format,” Musselwhite said. “It’s a good thing for Southaven.”
The mayor also disclosed that SpaceXAI has offered to purchase more than 400 nearby homes and businesses for owners who are concerned about noise or pollution. Musselwhite said he personally asked the company to make the offer, emphasizing the goal of keeping the development “non‑intrusive and non‑invasive.”
Local concerns
Not everyone is celebrating the growth. Terry Tongumpun, owner of Game Over Arcade Bar near Stanton Road and U.S. Highway 51, told Action News 5 that traffic congestion caused by the data‑center boom has hurt his business. “We’re hurting really bad,” he said. “The traffic is nuts and it’s affecting my business. People are avoiding xAI traffic.”
He added that the narrow roads and limited parking have created a “FedExForum‑like” atmosphere at night, making it difficult for patrons to reach his arcade.
Infrastructure and environmental questions
Mayor Musselwhite acknowledged growing‑pain concerns but stressed that the city is working with SpaceXAI to mitigate impacts. The company’s power plant sits in the 2800 block of Stanton Road, and the new sites are near the already‑busy Stateline Road corridor, where dust and traffic have become noticeable.
Environmental groups in Memphis are still awaiting utility data for the three existing Memphis facilities. Sarah Houston, executive director of Protect Our Aquifer, said her organization has filed a records request with Memphis Light, Gas and Water (MLGW) and is three months into the process. “We don’t have an accurate picture of water use, but we heard from MLGW CEO Doug McGowen that by the end of the year SpaceXAI could be in the top five water users,” Houston said.
Looking ahead
While the data‑center expansion promises significant fiscal benefits, city leaders say they will continue to monitor traffic, noise, and environmental impacts. The mayor’s office plans to work closely with SpaceXAI to address community concerns and ensure that the growth remains a net positive for Southaven residents.
Original reporting: Action News 5 WMC (Gray) — read the source article.
