SpaceXAI to build 2 more AI data centers in Southaven

SOUTHAVEN, Miss. — Elon Musk said SpaceXAI is building two more data centers in Southaven adjacent to Colossus 2 right across the state line in Memphis.

This will make six SpaceXAI data centers operating in the Memphis metro area.

Data centers in Memphis and Southaven

SpaceXAI has three data centers in Memphis: Colossus 1 in South Memphis, Colossus 2, nicknamed Macrohardrr, in Whitehaven, and Minihard next door.

A fourth, called Macrohardrr, is across the state line in Southaven near the SpaceXAI power plant which is located in the 2800 block of Stanton Road.

Musk said two more data centers are under construction nearby on Tulane Road. One, called Gun Range, is at the city’s former training facility. The other, called Spam, is being built at the old Hormel building.

The Gun Range data center is expected to come online in November. Spam is expected to be operational in December.

Southaven business owner reports a dip

Terry Tongumpun, a Southaven business owner, said the data center boom has hurt his business at Game Over Arcade Bar near Stanton Road and U.S. Hwy 51.

“We’re hurting really bad,” Tongumpun told Action News 5, “The traffic is nuts and it’s affecting my business. I definitely noticed a dip, and people are not coming out as much. They’re trying to avoid xAI traffic.”

The congestion on Stateline Road has increased near the SpaceXAI power plant and the Macrohardrr data center, where the two new data centers are already under construction.

Dust billows up. Cars sit at green lights going nowhere because the traffic is so deep.

Mayor cites tax revenue

Southaven Mayor Darren Musselwhite said growing pains aside, the SpaceXAI development is bringing unprecedented tax revenue.

“We knew it would be expanding in a campus-type format,” Musselwhite said, “It nets about $63 million a year to DeSoto County Schools, DeSoto County and the City of Southaven. It’s a good thing for Southaven.”

Buyout offer and environmental questions

Musselwhite confirmed that SpaceXAI is offering to buy more than 400 nearby homes and businesses if owners are bothered by noise or pollution.

In fact, the mayor said he asked Elon Musk’s company to make the gesture.

SIMILAR — Single mother says landlord accepted buyout from SpaceXAI, forcing her to move

“I think the number one goal,” said Musselwhite, “is for them not to be intrusive or invasive in any way with noise and anything else. That’s been the goal the whole time.”

The environmental impact of the data center development and subsequent expansion is not yet known.

In Memphis, activists are still waiting for information about water, electricity, and gas usage for the three data centers operating in the city.

“We have a pending records request to MLGW that we are now three months in,” said Sarah Houston, executive director of Protect Our Aquifer, “We’ve been waiting for the records on the most recent utility bills from Colossus 1, 2 and Minihard. 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 5 water users.”

Back in Southaven, Tongumpun said he worries SpaceXAI’s growth could mean it’s game over for his business.

“The complaint is…we just hate what xAI has done," he said, “The roads are too small. There’s not enough parking spots. And it’s just oversaturated. We feel like we’re at FedExForum every night. It’s crazy!”

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