Residents Say xAI Offered Property Purchases in Exchange for Dropping Noise Lawsuits

Real estate agents have reportedly approached homeowners in Southaven, Mississippi, offering to purchase their properties on behalf of xAI, the artificial intelligence company founded by Elon Musk. According to a recording reviewed by The Guardian, representatives outlined a target to purchase more than 400 homes in the Colonial Hills neighborhood. Under the reported proposal, homeowners would receive market-value purchase offers provided they agree not to join legal action regarding noise from a nearby power facility.

The power plant, a former Duke Energy site housing temporary gas turbines, supplies electricity to xAI datacenters in the region. The installation has drawn complaints from local residents since it began operation. Piano teacher Elizabeth Rose described the sound as a continuous, airplane-like engine noise that wakes her during the night. Jason Haley, a local resident and one of three plaintiffs who filed a lawsuit in June, stated that the constant noise and vibrations have caused significant distress and sleep disruption.

The lawsuit, filed by three local residents, alleges near-constant noise, vibrations, and other nuisance-level harms stemming from the power plant. According to the local mayor and real estate representatives, the acquired properties are intended to house xAI personnel. The company has experienced rapid expansion in the area, establishing three datacenters across Southaven and neighboring Memphis, Tennessee, over a two-year period.

Representatives for xAI did not respond to inquiries regarding the reported acquisition numbers and neighborhood plans. The company has previously stated an intention to be a good neighbor and has denied all allegations in the ongoing noise lawsuit. Meanwhile, Musk has spent time in the Memphis area overseeing the infrastructure build-out to support the development of the Grok artificial intelligence chatbot, highlighting the rapid growth of the project during a recent earnings call.