‘Elonville’: US residents say Musk’s xAI offered to buy homes if they don’t sue over datacenter noise

THE NEWS

What happened

Elon Musk's xAI is offering to buy homes in Southaven, Mississippi, contingent on residents dropping a noise lawsuit against its datacenter power plant. The company aims to expand its 'Colossus' supercomputer cluster, which has caused significant noise and pollution complaints from locals, while officials defend the project as an economic boon.

CONTEXT

Why it matters

xAI is buying homes in Southaven, Mississippi, but only if owners agree not to sue over noise from its datacenter power plant. Residents describe the sound as continuous jet-engine rumble that disrupts sleep and damages hearing. The company operates temporary gas turbines without federal permits, sparking environmental lawsuits. While officials praise the economic boost, neighbors fear becoming a 'company town' and losing their quiet community.

AT A GLANCE

Key facts

• xAI real estate agents are offering to purchase homes in the Colonial Hills neighborhood of Southaven, Mississippi.
• The offer includes a contractual condition that homeowners must agree not to join a class-action lawsuit filed by three residents over noise and vibrations from gas turbines.
• As of October 9, five homes have already been purchased under this agreement, with agents targeting up to 418 homes in the area.
• The datacenter power plant uses temporary gas turbines that operate without federal permits, raising environmental concerns regarding air pollution and health costs estimated at $44 million annually.
• xAI officially rebranded from SpaceXAI to SpaceXSI in July but is still referred to as xAI by neighbors; the company denies noise claims and states it intends to be a good neighbor.
• Local officials, including Southaven Mayor Darren Musselwhite, support the expansion for job creation and tax revenue, claiming city monitors have not detected ordinance breaches.
• The US Department of Justice previously blocked an environmental lawsuit by arguing xAI's technology is critical for national security efforts against Iran.