Musk’s xAI, SpaceX hit with class action over data center ‘nuisance’
Mississippi residents have filed a class-action lawsuit against Elon Musk's xAI and SpaceX, alleging that a power plant fueling their nearby data centers creates "omnipresent and inescapable" noise, harming health and property values. The lawsuit, filed in federal court in Oxford, claims negligence and public nuisance, seeking damages and disgorgement of profits. This comes after the NAACP previously sued xAI over environmental rule violations related to the same plant.
Elon Musk's xAI and SpaceX are facing a class-action lawsuit from Mississippi residents who claim a power plant powering nearby data centers is causing excessive and inescapable noise. The lawsuit, made public in federal court in Oxford, Mississippi, on Tuesday, alleges that the constant noise has eroded residents' health and property values, constituting a public nuisance and negligent failure to curb disturbance by Musk's companies.
The complaint, filed by three residents on behalf of an estimated 10,000 class members, seeks damages for emotional distress, reduced property values, and other harms, in addition to an unspecified amount in profits. The lawsuit attributes the disturbance to the artificial intelligence boom, which it claims is subjecting thousands of residents to near-constant noise and vibrations.
xAI, along with its subsidiary MZX Tech, invested over $20 billion to construct the gas-fired power plant in Southaven, Mississippi, with the support of Mississippi Governor Tate Reeves. This plant powers data centers in and around Southaven. The current lawsuit follows a separate environmental lawsuit filed by the NAACP against xAI in April over the plant and data centers, accusing the company of violating U.S. environmental rules, a case which is still pending.
Adding another layer to the legal challenges, the U.S. Justice Department indicated last month through a court filing that it might intervene in the NAACP case. The Justice Department noted that the dispute raises significant legal and policy questions regarding the government's role in AI infrastructure development.