Musk's AI firm is targeting homes near its Mississippi data center with buyout offers

Elon Musk's AI company is reportedly targeting 418 homes near its Mississippi data center, with buyout offers tied to waiving noise-lawsuit claims; county records show five purchases since October 9Elon Musk’s AI company xAI is reportedly looking to buy as many as 418 homes in a Mississippi neighbourhood near its data centres. However, the offers come with a condition: homeowners must agree not to join a lawsuit against the company over noise from its nearby power plant. According to a report by The Guardian, real estate agents have been visiting residents in Colonial Hills, a neighbourhood in Southaven, Mississippi, on behalf of xAI. As stated in the report, a realtor reportedly told one resident that the company was targeting 418 homes, with 18 homeowners already agreeing to sell.The company has not confirmed these figures or its plans for the neighbourhood. However, records from DeSoto County show that five homes have been purchased by MZX, an xAI subsidiary, since October 9.Why is Elon Musk's xAI buying homes near its data centresThe proposed purchases come as xAI expands its AI infrastructure in the Memphis and Southaven areas. The company has built three data centres, Colossus I, Colossus II and Macrohardrr, since July 2024 to support the development of its Grok AI chatbot.The homes are expected to provide accommodation for xAI employees. Southaven Mayor Darren Musselwhite said the purchases were intended to serve multiple purposes, including housing employees and helping residents who are unhappy about the nearby industrial development.“The buyout is not intended to be a company city at this point,” Musselwhite said.Residents complain about noise from xAI's power plantThe expansion has faced opposition from some local residents, who say gas turbines powering the data centres create continuous noise. “It sounds like an airplane engine but it’s continuous, it’s incredibly loud,” said Elizabeth Rose, a piano teacher who lives about two miles from the site.Three residents filed a lawsuit in June this year over what they described as “near-constant noise, vibrations and other nuisance-level harms” caused by the power plant. In a letter to residents, MZX reportedly said it was willing to purchase nearby properties on the condition that homeowners do not join the lawsuit. One resident, Gavin Foust, said he would not accept the offer because of this requirement.What Elon Musk’s AI company saysxAI has denied the allegations in the noise lawsuit and said it cares about being a good neighbour. The company has also said it has adjusted power output and built sound-dampening walls. The controversy comes as xAI continues to expand its data centre operations in the region, while residents remain divided over the jobs and investment the projects could bring and their impact on nearby communities.