Elon Musk's xAI is reportedly offering to purchase homes in a Southaven, Mississippi, neighborhood as part of an effort to resolve disputes over noise from its nearby data center and power plant. Real estate agents acting on behalf of the artificial intelligence company have approached residents with offers to buy their properties, contingent on the homeowners agreeing not to join a class-action lawsuit alleging nuisance-level noise and vibrations.
The company's subsidiary, MZX Tech, is extending these offers, which include a contractual condition that sellers release all claims related to the ongoing lawsuit. The lawsuit, filed in June by three Southaven residents, claims that the "near-constant noise, vibrations and other nuisance-level harms" from the xAI power plant have negatively impacted their lives and property values. Reports suggest xAI aims to acquire approximately 418 homes in the Colonial Hills neighborhood, with at least 18 residents having already agreed to sell.
Residents have described the noise from the plant's gas turbines as continuous and comparable to an airplane engine, with some reporting disruptions to their sleep. The power plant is reportedly operating with 69 unpermitted gas turbines, which have drawn scrutiny from the Environmental Protection Agency. The NAACP has also filed a separate lawsuit alleging Clean Air Act violations due to emissions from the turbines.
Southaven's mayor, Darren Musselwhite, has characterized the buyouts as voluntary and an act of corporate citizenship, suggesting the properties could house xAI employees. However, some renters in the area have reported receiving 60-day eviction notices as landlords sell their properties. xAI has denied the allegations in the noise lawsuit, stating that it aims to be a good neighbor and has implemented measures such as sound-dampening walls. The company has not officially confirmed the numbers related to the buyout targets, but county records indicate that five homes in Colonial Hills have been purchased by MZX since October 9.
The situation highlights a growing tension between the rapid expansion of data centers and the impact on surrounding residential communities. Similar disputes over noise and environmental concerns related to data center operations have emerged in other parts of the United States. The buyouts represent a strategy by xAI to mitigate potential legal liabilities as it expands its infrastructure in the Memphis and Southaven region, where it has established three large data centers since July 2024. Elon Musk has been spending significant time in the Memphis area overseeing the build-out of these facilities to support the development of the Grok AI chatbot.