SpaceX is adding two new sites, dubbed Gun Range and Spam, to its Colossus 2 AI computing complex in Memphis, aiming for operational status by the end of 2026 despite local opposition and legal challenges.

  • New Colossus 2 expansion sites named Gun Range and Spam near Memphis
  • Gun Range to open by November; Spam site operational by December
  • Local protests and NAACP lawsuit highlight community resistance

What happened

Elon Musk announced on social media that SpaceX is extending its Colossus 2 AI supercomputing complex with two additional sites called Gun Range and Spam, both located in the Memphis area. Gun Range is a site formerly owned by the local police department, while Spam was once a facility utilized by Hormel products. The expansion is scheduled to have Gun Range operational by the end of November 2026, followed by Spam in December.

This expansion is part of SpaceX's broader AI ambitions, notably supporting xAI’s efforts to enhance computing power for its Grok AI model. This follows the initial Colossus supercomputer launch in Memphis in 2024. Recent company disclosures indicate SpaceX has raised $40 billion in debt to secure AI chip capacity, with its AI ventures surpassing Starlink in revenue for the most recent quarter.

Why it matters

The expansion of Colossus 2 solidifies SpaceX’s rapid ascent within the AI computing industry, positioning the company as a significant player not just in space technology but also in artificial intelligence infrastructure. The scale of investment and operational growth highlights how critical computing capacity has become in AI advancement, impacting technology and finance sectors alike.

However, the project has sparked considerable opposition from Memphis residents and advocacy groups, concerned about environmental and regulatory compliance. The NAACP has filed a lawsuit against xAI and its subsidiary MZX Tech, alleging unauthorized methane gas turbine operations to power Colossus 2 outside Mississippi. Legal proceedings and public protests underline the growing tension between tech infrastructure expansion and community impact.

What to watch next

Key developments will involve the progress and operational status of the Gun Range and Spam sites by their respective deadlines, alongside how SpaceX manages community relations and regulatory scrutiny. Monitoring public hearings and responses from local authorities will offer insight into the potential for further opposition or support.

Additionally, the outcome of the ongoing NAACP litigation against xAI will be critical. With a US district judge recently denying a dismissal request, the lawsuit could set precedents regarding environmental oversight and use of energy resources in AI infrastructure projects. Industry watchers should also track how this expansion affects SpaceX’s AI business growth relative to its other divisions.

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