SpaceXAI is expanding its Colossus 2 data center complex across two additional sites in Southaven, Mississippi, according to statements made by company CEO Elon Musk on X.

The sites, named Gun Range and Spam in reference to their previous uses, are both claimed to be operational by the end of the year, with Musk stating that Gun Range is tracking to be operational by the end of November and Spam in December.

Colossus 2 expands across Gun Range and Spam sites

Musk said he walked the entire Colossus 2 site "around midnight and again this morning," adding that there was "good progress by the SpaceX team and contractors."

Gun Range was previously the site of a police and fire training center and will host a high-performance AI training cluster. The site will feature two single-story buildings on a 55.9-acre parcel of land.

Spam, meanwhile, was a warehouse that stored products manufactured by Hormel Foods Corporation, the maker of Spam, and will be repurposed as a single-story data center on 53 acres, optimized for inference.

GPU deployment targets

The two new campuses are expected to host approximately 420,000 Nvidia GB300 GPUs between them, according to Musk. They will join Colossus 2's existing Macrohard, Macroharder, and Minihard locations, which are set to host 330,000, 220,000, and 220,000 GPUs, respectively.

Musk said that by the end of 2026, there will be a total of around 1.2 million Blackwell GPUs deployed at Colossus 2.

Growth from Memphis to Mississippi

SpaceXAI's main data center portfolio was originally located in Memphis, Tennessee, before expanding across the border into Mississippi.

The company, which uses its data centers to power its Grok AI chatbot, first came to Memphis in 2024, launching its Colossus supercomputer in a new data center housed in a former Electrolux factory in Memphis's Boxtown district.

The company purchased the site for Colossus 2 in March 2025, and the data center came online in January 2026. While Musk claimed it offered 1 GW of capacity at launch, satellite imagery taken in January reportedly showed cooling equipment installed capable of managing only 350 MW.

The company's third data center was announced in January 2026 and is located in Southaven. News of that facility surfaced in March, when the company filed a construction permit for a USD 659 million development of another building on an adjacent land parcel.

Minihard was confirmed in July 2026, with construction taking place on a parcel of land on Tulane Road near the border between Tennessee and Mississippi.

Environmental scrutiny in Mississippi

Last month, SpaceXAI revealed it had been issued with a notice by the Mississippi Department of Environmental Quality (MDEQ), which alleges that "disturbing construction activities at sites occurred prior to coverage under Mississippi's Large Construction Stormwater General Permit."

The notice was issued to MZX Tech LLC, a SpaceXAI subsidiary, which was told that MDEQ is seeking civil penalties of up to USD 25,000 per day, with preliminary claimed exposure of approximately USD 6.1 million across three sites.

SpaceXAI said at the time it was cooperating with MDEQ and was in discussions to resolve the matters through a single agreed order.

The company also faces a lawsuit brought by the National Association for the Advancement of Colored People (NAACP), which alleges that SpaceXAI violated federal law and state regulations by constructing and operating a gas-fired power plant in Southaven, Mississippi, without required permits.

A judge last month rejected an attempt by the Department of Justice to block that lawsuit.

In its initial court 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 use and power arrangements

SpaceXAI uses turbines to power both its Colossus 1 and Colossus 2 data centers.

The company previously used a loophole in the Clean Air Act to run as many as 35 turbines without a permit for a year before local regulators granted a permit in 2025 to run 15 turbines until 2027. The NAACP alleges that the company has illegally installed and is operating 57 gas turbines at its Southaven facility.

Third-party rental business

In recent months, SpaceXAI has started renting its data centers to third parties. The company has signed major compute capacity agreements with Reflection, Anthropic, and Google.

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