xAI subsidiary offers home buyouts in Mississippi tied to noise lawsuit release

MZX Tech, a subsidiary of xAI, is reportedly offering to buy homes in the Colonial Hills neighborhood of Southaven, Mississippi, provided that residents agree not to join a lawsuit targeting the company’s nearby data center and power plant, according to reports from The Guardian and MarketScale.

The Buyout Offer

A realtor working on behalf of xAI reportedly told one resident that the company plans to purchase 418 homes, with 18 homeowners already having plans to sell, according to The Guardian. While xAI has not confirmed these specific figures, DeSoto County records show that MZX Tech has purchased five homes in the neighborhood between October 9 and October 28, 2026.

According to a letter received by several households, MZX denies all allegations against it but is offering to purchase real estate "in exchange for, among other things, a release of all claims related to the lawsuit." The letter states that by signing the release, homeowners "will be unable to recover any damages or other relief from the Haley lawsuit, and you will also be unable to bring claims on your own behalf."

Noise and Legal Disputes

The offers are tied to a June lawsuit filed by three residents, including Jason Haley, against xAI and MZX Tech. The plaintiffs allege "near-constant noise, vibrations and other nuisance-level harms" from gas turbines used to power the data centers. The complaint estimates the potential class of affected neighbors at more than 10,000 people.

Residents have reported significant disruptions:

• Elizabeth Rose, a local resident, stated the plant sounds like a "continuous" airplane engine that has woken her at 2 a.m. and 3 a.m.
• Jason Haley described the noise as a "high-pitched hum" and a sound "like an airplane over your house."

Southaven Mayor Darren Musselwhite stated that city monitoring has not detected a breach of the local 70-decibel noise ordinance. He described the buyouts as "a goodwill gesture from a good corporate citizen" and noted the homes could eventually house xAI employees. He has rejected claims that the plan is intended to create a "company city."

Regulatory and Environmental Allegations

In addition to the noise lawsuit, the NAACP and environmental groups have filed a separate federal case regarding the use of gas turbines. Plaintiffs allege the turbines lack required air permits in violation of the Clean Air Act.

There is a reported disagreement between regulators regarding these permits. The EPA has indicated that some turbines may require permits, while Mississippi regulators have maintained that temporary or portable turbines did not require air permits under their interpretation. The Southern Environmental Law Center estimated that toxic emissions from these turbines could cause $44 million in annual health costs, though these figures represent estimates from the plaintiffs rather than established judicial findings.

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Sources

• theverge.com: xAI is buying out homeowners who promise not to sue over data center noise | The Verge
• theguardian.com: ‘Elonville’: US residents say Musk’s xAI offered to buy homes if they don’t sue over datacenter noise | Mississippi | The Guardian
• marketscale.com: xAI offers Southaven home buyouts tied to noise lawsuit
• yahoo.com: xAI Is Offering to Buy Out a Mississippi Neighborhood – If Residents Agree Not to Sue Over Noise
• cryptobriefing.com: xAI offers to buy Mississippi homes near its power plant, with a lawsuit catch
• gadgetreview.com: xAI Is Offering to Buy Out a Mississippi Neighborhood - If Residents Agree Not to Sue Over Noise - Gadget Review

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.