Sep 14, 2026 · 22 min · 19 segments
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So South Haven is approving the new SpaceX AI data center on the former training facility site.
The South Haven Board of Aldermen has approved those plans, and the project would redevelop the 51-acre property on Tulane Road into a 660,000-square-foot data center.
Once completed, this facility would become XAI's fifth data center in the Memphis and North Mississippi area.
While the project was approved, some South Haven officials raised concerns about it beginning another major development for completing previous commitments.
Alderman Charles Hoots said residents in his district want the company to address ongoing problems connected to its existing projects.
Those concerns include noise from temporary turbines that have been allowed to continue operating for another year.
XAI acquired the Tulane Road property through a land exchange agreement with the city of South Haven.
As a part of that agreement, the company also contributed $40 million towards the construction of a new training facility for the city.
And that approval comes as other communities in DeSoto County are also considering how to handle the rapid growth of large data centers.
Olive Branch recently adopted stricter requirements for future data center developments.
Alongside that, South Haven Mayor Darren Musselwhite says artificial intelligence represents the next industrial revolution and believes South Haven is playing an important role in the United States' competition with China.
Musselwhite said the SpaceX AI data center developments in South Haven and Memphis have national security implications and described the projects as patriotic.
XAI is also building a power plant at that Stanton Road with 41 natural gas turbines permitted by the Mississippi Department of Environmental Quality.
The plant provides power to the company's Colossus II data center in Memphis, and that power plant has faced lawsuits over emissions permitting as well as the complaints from nearby residents about pollution.
SpaceX AI also operates its macro harder data center at the 2400 Stateline Road West in South Haven, inside the former 810,000 square foot GXO logistics warehouse.
The city has asked the company to install additional noise barriers and keep the sound levels within acceptable limits.
The company has also recently removed 11 temporary power turbines as part of an agreement with the MDEQ.
Musselwhite said the size and speed of these projects have created challenges because companies have never attempted developments of this scale this quickly.
So South Haven is approving the new SpaceX AI data center on the former training facility site.
The South Haven Board of Aldermen has approved those plans, and the project would redevelop the 51-acre property on Tulane Road into a 660,000-square-foot data center.
Once completed, this facility would become XAI's fifth data center in the Memphis and North Mississippi area.
While the project was approved, some South Haven officials raised concerns about it beginning another major development for completing previous commitments.
Alderman Charles Hoots said residents in his district want the company to address ongoing problems connected to its existing projects.
Those concerns include noise from temporary turbines that have been allowed to continue operating for another year.
XAI acquired the Tulane Road property through a land exchange agreement with the city of South Haven.
As a part of that agreement, the company also contributed $40 million towards the construction of a new training facility for the city.
And that approval comes as other communities in DeSoto County are also considering how to handle the rapid growth of large data centers.
Olive Branch recently adopted stricter requirements for future data center developments.
Alongside that, South Haven Mayor Darren Musselwhite says artificial intelligence represents the next industrial revolution and believes South Haven is playing an important role in the United States' competition with China.
Musselwhite said the SpaceX AI data center developments in South Haven and Memphis have national security implications and described the projects as patriotic.
XAI is also building a power plant at that Stanton Road with 41 natural gas turbines permitted by the Mississippi Department of Environmental Quality.
The plant provides power to the company's Colossus II data center in Memphis, and that power plant has faced lawsuits over emissions permitting as well as the complaints from nearby residents about pollution.
SpaceX AI also operates its macro harder data center at the 2400 Stateline Road West in South Haven, inside the former 810,000 square foot GXO logistics warehouse.
The city has asked the company to install additional noise barriers and keep the sound levels within acceptable limits.
The company has also recently removed 11 temporary power turbines as part of an agreement with the MDEQ.
Musselwhite said the size and speed of these projects have created challenges because companies have never attempted developments of this scale this quickly.
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