xAI Offers Southaven Home Buyouts to Address Data Center Noise Lawsuit
xAI is reportedly offering to buy as many as 418 homes in Southaven, Mississippi’s Colonial Hills neighborhood from residents who agree not to join or pursue nuisance claims over noise from gas turbines powering its data centers. Residents and the NAACP have sued over the turbines, which critics say operate without required federal permits and disproportionately affect predominantly Black communities.
Elon Musk’s xAI is reportedly making door-to-door offers to purchase homes in Southaven’s Colonial Hills neighborhood at market value. The proposed agreements would require homeowners to release claims related to the company’s turbines and refrain from seeking legal relief over alleged noise pollution. At least 18 residents have reportedly accepted the offer, while the company’s reported goal is to acquire about 418 homes for use by company staff.
Residents have filed nuisance and negligence claims over the turbine noise, and the NAACP has separately sued, alleging that predominantly Black and working-class communities are bearing the effects of xAI’s data center expansion. The company denies the nuisance allegations. The buyout plan could cost roughly $75 million based on reported home values, and xAI has reportedly faced scrutiny over installing the gas turbines without federally mandated permits.