This worked for me:
xargs mkdir <list.txt
This works because if you give multiple arguments to mkdir it will happily create all the directories it can create. xargs simply "flattens" your text file by replacing newlines with spaces, thereby invoking mkdir with a long list of arguments containing all your directory names at once instead of one at a time.
If you want to add a fixed prefix (or suffix, or both):
xargs -I, mkdir prefix_, <list.txt
Whatever you put after the -I switch (a comma in this case) is replaced by the name that is read from the file.
One more thing, I would add quotes just in case the file names in your text file have spaces in them or other "special" characters:
xargs -I, mkdir "," <list.txt
or
xargs -I, mkdir "prefix_," <list.txt