MEMPHIS, TN — Elon Musk says two additional data centers tied to SpaceXAI’s expanding artificial intelligence operation in the Memphis area are expected to begin operating before the end of the year. The announcement comes as the rapid growth of the facilities faces increasing scrutiny from residents and city officials concerned about the effects of large-scale data center development.
The two sites, known as Gun Range and Spam, are part of the company’s Colossus 2 computing complex. Musk said Gun Range is expected to become operational by the end of November, with Spam scheduled to follow in December. Those dates are projections from Musk and have not been independently confirmed.
The names reflect the properties’ previous uses. Gun Range was formerly a police and fire training facility, while Spam was a warehouse that stored products made by Hormel Foods. Both properties are in Southaven, Mississippi, across the state line from Memphis.
Together, the two facilities are expected to house approximately 420,000 Nvidia GB300 graphics processing units. Musk indicated that Gun Range would contain about 220,000 chips configured to train artificial intelligence models. Spam is expected to house approximately 200,000 chips designed to handle inference, the process of responding to requests from users and running already-trained AI systems.
The new buildings will expand Colossus 2, which already includes facilities known as Macrohard, Macroharder and Minihard. Musk has said the broader Colossus 2 complex is expected to contain approximately 1.2 million Nvidia Blackwell chips by the end of 2026. The company uses the computing infrastructure to support its Grok artificial intelligence platform.
The expansion follows the launch of the original Colossus supercomputer in 2024 at a former Electrolux manufacturing facility in South Memphis. The company later expanded its operations into the Whitehaven area and Southaven. Musk has also said he has been spending several days a week in Memphis overseeing construction.
The projects have drawn opposition from nearby residents who have raised concerns about pollution, noise, electricity demand and water use. In April, the NAACP filed a federal lawsuit against xAI and subsidiary MZX Tech, alleging that the companies operated methane gas turbines without required permits at the Southaven site. A federal judge recently rejected the companies’ request to dismiss the lawsuit, allowing the case to proceed.
Meanwhile, the Memphis City Council approved a 135-day pause on new data center permitting after rejecting a proposed yearlong moratorium. The measure is intended to give city officials time to develop land-use and siting rules addressing neighborhood protections, infrastructure and environmental concerns. It does not stop existing facilities from operating or automatically halt projects with protected approvals.
The latest expansion highlights the challenge facing communities across the Mid-South as technology companies move quickly to build the infrastructure needed for artificial intelligence while residents and local governments seek greater oversight of the projects.
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