SpaceXAI is looking to build another data center in the Mid-South.
On Sept. 1, the Southaven Mayor and Board of Aldermen approved two development resolutions, including a design review approval for a "data storage warehouse" along Tulane Road. (The other resolution was for a subdivision of the property, combining two parcels of land.)
The property, 8425 Tulane Road, sits directly across from SpaceXAI's Southaven power plant (former Duke Energy site) at 2875 Stanton Road. The 51-acre Tulane Road site was formerly owned by the City of Southaven and used by the Southaven Police Department.
Southaven Planning and Development Director Whitney Choat-Cook said Sept. 1 the plans are for a "roughly 660,000 square foot data storage facility" at the site.
Choat-Cook said the site plans were approved by the planning commission unanimously.
SpaceXAI makes $40M offer city 'couldn't really refuse'
The area was used for police and fire training. The city entered into a land swap agreement with SpaceXAI affiliate MZX Tech LLC for the property. Per the agreement, Southaven gave MZX Tech LLC the Tulane Road property in exchange for 69 acres along Swinnea Road and $40 million to build new city facilities, according to city documents.
"They made an offer the city couldn't really refuse," Alderman Charlie Hoots said during a phone call with The Commercial Appeal on Sept. 2.
Hoots was the lone alderman who voted against the design plans for the new data center proposal.
"My concern is that a lot of stuff is going on and nothing is finished," he said.
Hoots said he has been concerned with the temporary turbine usage from SpaceXAI and the extension they were given for turbine removal by the state. In July, SpaceXAI and the Mississippi Department of Environmental Quality (MDEQ) announced an agreement order to remove temporary turbines by July 2027.
"Wish we had an ordinance on data centers because we don't have any control of it," he said. "(We) outght to be looking at something in the future."
Currently, Southaven's zoning ordinance for industrial allows for storage warehouses, including "data storage," which allows for data centers.
Olive Branch sets parameters for data centers
On Aug. 18, nearby Olive Branch passed significant restrictions on data center development, some of the first of its kind in the Mid-South.
Olive Branch Director of Planning and Development Venard Asongayi highlighted both Southaven and Memphis zoning language as problems with data center development due to how industrial zones and warehouses are classified in the development codes. Needs for a typical warehouse designation could be vastly different than the needs of a data center.
SpaceXAI enlarges footprint to 5 data centers
The site will be SpaceXAI's second Southaven data center and fifth planned hyperscale data center within the Memphis and Southaven regions.
Operating or planned SpaceXAI data centers in Memphis and Southaven
- Colossus | 3231 Paul R. Lowry Road, Memphis | Operational
- Colossus 2 | 5420 Tulane Road, Memphis | Operational
- Marcrohardrr | 2400 Stateline Road, Southaven | Under construction
- Minihard | 5414 Tulane Road, Memphis | Under construction
- 8425 Tulane Road, Southaven | Planned
Currently, the nearby Stanton Road power plant powers Colossus 2 in Memphis. That power plant is also expected to power future data centers near the industrial parks along Tulane Road, Stateline Road and Stanton Road on both the Shelby County and DeSoto County sides.
On Aug. 4, during a SpaceX earnings call, founder Elon Musk said the company is looking to have20 gigawatts of energy demand at its data centers by 2027. During that call he said 15 gigawatts will come directly from a "power plant." Currently, the Stanton Road (former Duke Energy site) is the primary SpaceXAI power plant.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679
This article originally appeared on Memphis Commercial Appeal: Southaven Board of Aldermen OK plans for 2nd SpaceXAI data center, 5th in region
