Musk says SpaceXAI is building two more AI data centers in Southaven

Elon Musk says SpaceXAI is building two more AI data centers in Southaven, Mississippi, with projected openings in November and December 2026. The projects would bring its Memphis-area total to six facilities, adding computing capacity as nearby businesses complain about construction traffic and the mayor points to substantial tax revenue.

The sites, called Gun Range and Spam, are under construction on Tulane Road. Their names reflect the buildings’ previous uses: Gun Range occupies the city’s former training facility, while Spam uses an old Hormel building. Both sit in Southaven, across the state line from Memphis, where the company already has computing operations.

Musk expects Gun Range to begin operating by the end of November, followed by Spam in December, according to The Tennessee Tribune. Action News 5 also places the openings in November and December 2026. These are projected operating dates, not confirmed completions; the Tribune explicitly notes that Musk’s schedule has not been independently verified.

One site trains models; the other runs them

The two buildings are expected to house about 420,000 Nvidia GB300 graphics processing units, or GPUs, the Tribune reports. Musk indicated that Gun Range would hold roughly 220,000 chips configured for training AI models. Spam would contain about 200,000 for inference: running already-trained systems and responding to requests from users. Those figures describe planned capacity, not an independently confirmed count of installed chips.

Gun Range and Spam are part of the Colossus 2 computing complex, which supports the Grok AI platform. Musk has said the broader complex is expected to contain approximately 1.2 million Nvidia Blackwell chips by the end of 2026. That is his target for the larger complex, rather than the capacity of these two buildings alone.

We’re hurting really bad

Terry Tongumpun, owner of Game Over Arcade Bar, speaking to Action News 5

Tax receipts and neighborhood disruption

Southaven Mayor Darren Musselwhite told Action News 5 that the SpaceXAI development brings about $63 million a year to DeSoto County Schools, DeSoto County and the city. He said officials had expected the operation to grow in a campus-style arrangement and described the development as good for Southaven despite its growing pains.

Tongumpun’s experience is different. The Game Over Arcade Bar owner said customers were avoiding traffic associated with the data centers, reducing visits to his business near Stanton Road and U.S. Highway 51. Action News 5 described congestion on Stateline Road near the company’s power plant and data-center construction, with cars sitting through green lights.

Musselwhite also confirmed that SpaceXAI is offering to buy more than 400 nearby homes and businesses if owners are bothered by noise or pollution. He said he had asked the company to make the offer. The number describes properties covered by an offer, not completed purchases, and the mayor framed the gesture as an effort to avoid intruding on neighbors.

Utility use remains an unresolved concern. Sarah Houston, executive director of Protect Our Aquifer, told Action News 5 that her group had waited three months for records from Memphis Light, Gas and Water covering recent utility bills for Colossus 1, Colossus 2 and Minihard. She said the group lacked an accurate picture of water consumption. The environmental effects of the development and expansion are not yet known.