Musk’s Xai Offers Noise-hit Neighbors Home Buyouts to Avoid Lawsuits
WHO:
The Guardian - Elon Musk’s AI company, xAI, officially became SpaceXAI and was later rebranded as SpaceXSI; the article says nearby residents still call it xAI.
The Guardian - MZX, an xAI subsidiary operating the Southaven site, offered to buy nearby homes through a real estate broker.
The Guardian - Elizabeth Rose, a piano teacher who lives about two miles from the site, described the turbines as “incredibly loud.”
The Guardian - Jason Haley, one of three local plaintiffs, said turbine noise prevents him from sleeping; he filed a lawsuit and posted noise-monitoring videos online.
The Guardian - Gavin Foust, a local paramedic, said he would not accept the offer because it requires agreeing not to sue.
The Guardian - Darren Musselwhite, Southaven’s mayor, said the purchases could provide homes for employees and serve as a goodwill gesture; he said a “company city” was not currently intended.
The Guardian - Mississippi Governor Tate Reeves has supported data-center development; the article quotes him saying restrictions would mean “surrendering the future of technology to China.”
Drudge Report - Its headline describes residents as saying Musk offered to buy their homes if they do not sue over data-center noise.
WHAT:
The Guardian - A realtor said xAI was targeting 418 Colonial Hills homes and that 18 homeowners had agreed to sell, according to a recorded conversation heard by the newspaper. DeSoto County records showed MZX had bought five neighborhood homes since 9 October.
The Verge - MZX’s offer requires homeowners to release claims related to the Southaven Plant, including possible claims in the Haley lawsuit; after signing, sellers cannot recover damages or other relief through that lawsuit or bring claims on their own behalf.
The Guardian - Three local residents sued in June, alleging “near-constant noise, vibrations and other nuisance-level harms.” xAI denies the noise claims.
The Guardian - The Southaven-area operation includes three data centers—Colossus I, Colossus II and Macrohardrr—and a former Duke Energy site with 69 temporary gas turbines.
The Guardian - The average home price in the area is about $180,000. The Southern Environmental Law Center estimated turbine emissions cause $44 million in annual health costs.
The Guardian - The EPA determined that the turbines were operating without federally required permits. Environmental groups and the NAACP sued to stop their use; the Justice Department unsuccessfully sought to block that case on national-security grounds.
WHERE:
The Guardian - The homes are in Colonial Hills, Southaven, Mississippi, near data centers in the Memphis, Tennessee, and Southaven area.
WHY:
The Guardian - MZX said it needed property for business purposes; the mayor said the purchases could house employees and act as a goodwill gesture. The offer is conditioned on releasing claims connected to the lawsuit.
HOW:
The Verge - Sellers accepting MZX’s offer would sign a real-estate contract and execute a separate release agreement at closing.
The Guardian - xAI has varied power output and built sound-dampening walls. The company agreed with state regulators to convert the plant into a permanent gas-fired facility.
(UPDATED October 28, 2026 19:05 UTC)
MZX, an xAI subsidiary, is offering to buy homes in Colonial Hills, near its Southaven, Mississippi, data-center complex, but sellers must release claims connected to a lawsuit over noise and other alleged harms. A realtor said the company was targeting 418 homes and that 18 owners had agreed to sell; residents describe the turbines as loud and disruptive, while xAI denies the noise claims. The complex includes three data centers and 69 temporary gas turbines, which the EPA found were operating without federally required permits, and the company says it needs the properties for business purposes while the mayor has described the purchases as a possible goodwill gesture.