SpaceXAI is pushing ahead with the buildout of its Colossus 2 complex in Southaven, Mississippi, with two additional campuses confirmed by CEO Elon Musk in statements on X.
The new sites, known as Gun Range and Spam, are slated to come online before the year ends, with Musk saying Gun Range is on track for the end of November and Spam for December. Since launching its first Memphis facility in 2024, the company has been expanding across northern Mississippi, adding to the growing pipeline of Data Center Projects in the US. Its data centers are designed to power its Grok AI chatbot.
Repurposed land from a firing range to a meat-products warehouse
Both new campuses take their names from what stood on the land before.
Gun Range previously housed a police and fire training center and will now hold a high-performance AI training cluster, spread across two single-story buildings on a 55.9-acre parcel.
Spam was a warehouse storing goods made by Hormel Foods Corporation, the maker of the canned meat product of the same name, and is being converted into a single-story data center on 53 acres that will be optimized for inference workloads.
Musk described walking the entire Colossus 2 site "around midnight and again this morning," noting "good progress by the SpaceX team and contractors."
*GPU counts at the expanding complex
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The two new campuses are expected to hold roughly 420,000 Nvidia GB300 GPUs combined, according to Musk. They will sit alongside Colossus 2's existing Macrohard, Macroharder, and Minihard locations, which are set to carry 330,000, 220,000, and 220,000 GPUs, respectively.
**How the Mississippi footprint took shape
**SpaceXAI's data center operations began in Memphis, Tennessee, where the company launched its Colossus supercomputer in 2024 inside a former Electrolux factory in the city's Boxtown district.
Expansion followed across the state line into Mississippi: the company bought the Colossus 2 site in March 2025, and that data center came online in January 2026.
Musk claimed it delivered 1 GW of capacity at launch, though satellite imagery from January reportedly showed cooling equipment sufficient for only 350 MW.
The company's third Mississippi-area data center was announced in January 2026, located in Southaven.
Details of that facility emerged in March, when SpaceXAI filed a construction permit for a USD 659 million building on an adjacent parcel. Minihard was confirmed in July 2026, with construction underway on land along Tulane Road near the Tennessee-Mississippi border.
**Regulatory and legal challenges mount
**The expansion has drawn scrutiny from Mississippi regulators. Last month, SpaceXAI disclosed it had received a notice from the Mississippi Department of Environmental Quality alleging that "disturbing construction activities at sites occurred prior to coverage under Mississippi's Large Construction Stormwater General Permit."
The notice was directed at MZX Tech LLC, a SpaceXAI subsidiary, with MDEQ seeking civil penalties of up to USD 25,000 per day and claiming preliminary exposure of approximately USD 6.1 million across three sites. SpaceXAI said it is cooperating with MDEQ and negotiating a resolution through a single agreed order.
Separately, the NAACP has sued the company, alleging it violated federal law and state regulations by building and operating a gas-fired power plant in Southaven without the required permits.
A judge last month declined the Department of Justice's attempt to block that suit.
In its initial filing, the NAACP stated that "the Colossus Gas Plant emits significant amounts of harmful pollutants, including nitrogen oxides ('NOx') and formaldehyde, which are tied to increases in asthma, respiratory diseases, heart problems, and certain cancers in persons exposed to them."
**Turbine fleet and permitting history
**Both Colossus 1 and Colossus 2 are powered by turbines. The company previously took advantage of a loophole in the Clean Air Act to run up to 35 turbines without a permit for a year before local regulators in 2025 granted a permit allowing 15 turbines to operate until 2027.
The NAACP alleges SpaceXAI has illegally installed and is running 57 gas turbines at its Southaven facility, highlighting the environmental and regulatory challenges facing major developments tracked in the US Data Center Project Database.
**Opening capacity to outside customers
**In recent months, SpaceXAI has begun renting out capacity in its data centers to third parties, signing major compute agreements with Reflection, Anthropic, and Google.
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