Elon Musk’s xAI Offers Home Buyouts in Mississippi Amid Noise Lawsuit

Real-estate agents for MZX, a subsidiary of Elon Musk’s AI firm xAI, are canvassing Colonial Hills in Southaven, Mississippi, offering to buy homes on the condition that owners do not join a class-action suit over noise from a nearby power plant that powers three xAI datacenters. The target is 418 homes; 18 owners have agreed, and five homes have been purchased since October 9, according to DeSoto County records.

The Guardian

Since mid-2024, xAI has built three datacenters—Colossus I, Colossus II and Macrohardrr—on the Memphis-Southaven border, using a former Duke Energy site that now houses 69 temporary gas turbines. Musk, who often stays in an Airstream trailer near the sites, has highlighted rapid growth of the company’s Grok chatbot. The expansion has drawn political support and local resistance.

The Guardian

• Targeted buyouts: 418 homes; 18 agreed; 5 bought since October 9.

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• Average home price: about $180,000.

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• Turbines: 69 units operating without federal permits (EPA).

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• Southern Environmental Law Center estimate: $44 million in annual health costs from emissions.

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• Noise monitoring: city officials report levels below the 70-decibel limit; critics cite recordings of 50 decibels or higher.

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• MZX’s letter to residents says the property is “required for its business purposes” and that the offer is contingent on non-participation in the lawsuit.

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• The company says addressing noise is a “top priority” and that monitors have not detected a breach of the 70-decibel limit.

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• The EPA has determined the turbines lack required federal permits, leaving enforcement to the state.

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• The Department of Justice attempted to block a federal lawsuit filed by environmental groups and the NAACP, arguing xAI’s technology is needed for national security.

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Residents describe the turbines as “continuous” and “incredibly loud,” with some waking at 2 a.m. and 3 a.m. Paramedic Gavin Foust calls the situation “reckless and shameful,” noting personal hearing damage. Plaintiff Jason Haley, a longtime resident, says the noise is “torturous” and has posted videos online. Environmental groups argue the emissions worsen asthma, COPD and other health conditions.

The Guardian

Elizabeth Rose, a piano teacher, says the plant’s “low-level growl” began in August of the previous year and sometimes forces her to leave home. Gavin Foust reports that elderly neighbors have accepted the buyout to avoid the turbines, while he refuses because of the anti-suit clause.

The Guardian

• Noise levels: City monitors claim compliance with the 70-decibel limit; critics point to recordings of 50 decibels or higher that may still impact health.

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• Permit status: The EPA notes a lack of federal permits, but enforcement responsibility rests with the state, leaving the turbines’ legal standing unclear.

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xAI has agreed with state regulators to replace the temporary turbines with a permanent gas-fired facility by next summer, a move intended to reduce noise. The conditional home-buyout program continues as the company seeks additional properties to prevent further participation in the lawsuit.

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• “It sounds like an airplane engine but it’s continuous, it’s incredibly loud,” — Elizabeth Rose

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• “We’re seeing the fastest growth I’ve ever seen in my life for Grok bot,” — Elon Musk

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• “I thought I’d make some noise of my own because of this bullshit,” — Jason Haley

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• “This development will produce unprecedented tax revenue for DeSoto county taxpayers that will enhance the quality of life for all,” — Darren Musselwhite, Southaven’s mayor

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