Residents of a Mississippi neighborhood near Southaven are facing offers from xAI, Elon Musk’s artificial intelligence company, to purchase their homes on condition they do not join a lawsuit concerning ongoing noise disturbances from a nearby power plant. The initiative targets Colonial Hills, a community adjacent to three xAI datacenters constructed within the past two years as part of the company’s rapid expansion in the region.
Real estate agents hired by xAI have approached homeowners with proposals to buy their properties, reportedly aiming to acquire up to 418 houses. As of mid-October, at least 18 residents have agreed to sell, according to a recording obtained by local sources. xAI, which operates through its subsidiary MZX at the site, has declined to publicly detail its full intentions for the neighborhood but has stated it seeks to be a “good neighbor” and denies any wrongdoing in the noise-related lawsuit.
The power plant in question grew out of a former Duke Energy site and now hosts dozens of temporary gas turbines that supply power to the datacenters. Installed without federal permits, these turbines have been a source of persistent noise described by residents as comparable to the continuous roar of an airplane engine. Some locals report being woken during the night by the sounds, which have caused significant distress.
Elizabeth Rose, a piano teacher living two miles from the facility, described the turbines’ noise as “incredibly loud” and expressed concern that xAI plans to acquire much of the neighborhood, dubbing the area “Elonville.” Nearby resident Jason Haley, one of three plaintiffs who filed a lawsuit in June alleging “near-constant noise, vibrations, and other nuisance-level harms,” said the noise has affected his sleep and well-being. Haley also criticized Mississippi Governor Tate Reeves for framing opposition to datacenters as unpatriotic, highlighting the contentious political context surrounding the development.
xAI has countered complaints by stating efforts have been made to mitigate sound, including varying power output and installing sound-dampening structures. The company has also indicated a willingness to purchase homes with the stipulation that sellers agree not to join the class action lawsuit initiated by Haley and others.
The broader community response remains divided. Some residents welcome the jobs and economic activity brought by xAI’s facilities, while others decry the environmental and health impacts linked to the turbines. The Southern Environmental Law Center has estimated the turbines’ emissions could cause $44 million in annual health costs, although no comprehensive on-site air monitoring has been conducted. Environmental groups and the NAACP have sought legal action to halt the turbines’ operation, citing concerns over pollution.
Southaven Mayor Darren Musselwhite acknowledged the noise issue as a priority and noted that city noise monitors have not recorded violations of the local 70-decibel limit. He characterized the property purchases as a goodwill gesture and a measure to offer housing for some xAI employees, denying that the company intends to create a corporate enclave.
Despite an agreement in July with state regulators to replace the temporary turbines with a permanent gas-fired facility by mid-2025—expected to reduce noise—residents remain apprehensive, in part due to past permit violations and environmental fines faced by xAI.
For some homeowners, like Gavin Foust, a paramedic and lifelong resident near the site, the noise and air pollution have disrupted the community’s long-standing tranquility. While some neighbors have accepted buyout offers, others resist selling, citing reluctance to abandon their homes or principles opposing AI development.
The ongoing dispute underscores tensions as xAI pursues its ambitious vision of building the world’s largest AI supercomputer cluster in Southaven and Memphis. Elon Musk, who has invested heavily in Republican political campaigns and personally oversees the expansion, described the platform Grok’s growth as unprecedented. However, the controversy has galvanized local opposition, prompting renewed voter engagement among some residents who feel marginalized amid the company’s rapid advances and the disruptions to their daily lives.