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● Covered by 2 sources · 2 reportsLow impact2 negative

xAI offers to buy homes in Mississippi neighborhood to avoid datacenter noise lawsuits

🔄 Updated 8d ago — new reporting from Tom's Hardware
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Key points

  • xAI is offering to buy homes in Southaven, Mississippi.
  • Homeowners must agree not to sue over datacenter noise.
  • The company plans to house staff in acquired homes.
  • A realtor indicated a target of 418 homes for purchase.
  • SpaceXSI is Elon Musk's data center business.
  • SpaceXSI powers Grok AI operations.
  • The properties are in Colonial Hills, Southaven.
  • The properties are about half a mile from the powerplant.
  • MZX is the SpaceXSI subsidiary operating Colossus II site.
  • Elon Musk is staying in an Airstream trailer four nights a week.

xAI's Acquisition Strategy

xAI, Elon Musk's artificial intelligence company, is offering to buy homes in the Colonial Hills neighborhood of Southaven, Mississippi. Real estate agents are approaching residents with offers to purchase their properties, contingent on the homeowners agreeing not to participate in a lawsuit against xAI concerning noise pollution from a nearby power plant.

Datacenter Expansion and Noise Complaints

The power plant, a former Duke Energy site, houses 69 temporary gas turbines that power xAI's datacenters. Residents report continuous, loud noise from these turbines, which were installed without permits. This noise has caused disturbances, with some residents being woken up during the night.

Impact on the Neighborhood

The acquisition plan could encompass a significant portion of Colonial Hills. A realtor stated a target of 418 homes for purchase, with 18 homeowners already agreeing to sell. The acquired homes are intended to house xAI staff as the company expands its datacenter operations in Southaven and Memphis, Tennessee.

Company Response and Resident Concerns

xAI has not commented on the specific numbers or plans for the neighborhood, though it has previously stated intentions to be a 'good neighbor' and denies claims in the noise lawsuit. Residents express concern that the expansion will transform their community into an 'Elonville', dominated by the company's presence.

Updates

🕒 2026-10-29 · new reporting from Tom's Hardware
  • SpaceXSI is Elon Musk's data center business.
  • SpaceXSI powers Grok AI operations.
  • The properties are in Colonial Hills, Southaven.
  • The properties are about half a mile from the powerplant.
  • MZX is the SpaceXSI subsidiary operating Colossus II site.
  • Elon Musk is staying in an Airstream trailer four nights a week.

✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →

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How outlets covered it

SpaceXSI, Elon Musk's data center business, is reportedly purchasing 418 properties in Colonial Hills, Southaven, near its AI data center. The company requires sellers to withdraw from a class-action lawsuit concerning noise pollution from the data center's gas turbines, which power Grok AI operations.

xAI is offering to purchase homes in Southaven, Mississippi, from residents who agree not to join a lawsuit against the company regarding noise from its datacenter power plant. This initiative aims to house xAI staff and expand its operations, with a realtor indicating a target of 418 homes for acquisition.