‘Elonville’: Mississippi residents say Musk’s xAI is buying up homes if they don’t sue over noise

Real estate agents representing Elon Musk's xAI have been going door to door in Southaven, Mississippi, offering homeowners cash to sell their properties on the condition they don't join a lawsuit against the company over noise from its power plant. The plan could potentially acquire nearly the entire Colonial Hills neighborhood, with a realtor indicating a target of purchasing 418 homes.

The homes would house xAI staff as the company rapidly expands in the area, having constructed three datacenters—Colossus I, Colossus II and Macrohardrr—in Southaven and adjoining Memphis, Tennessee, over the past two years. The expansion has brought with it significant noise complaints from residents.

Noise Complaints

The noise stems from 69 temporary gas turbines installed without permits to power the new datacenters. Since August 2025, residents have reported being disturbed by the constant sound, with some describing it as similar to an airplane engine running continuously.

Three local residents, including Jason Haley, filed a lawsuit in June 2026, citing "near-constant noise, vibrations and other nuisance-level harms" from the power plant. Haley, who has lived in his home for 20 years, described the experience as "torturous."

Environmental Concerns

The power plant has also raised environmental concerns. The US Environmental Protection Agency determined that the gas turbines have been operating without required federal permits. While no on-site air pollution monitoring has been conducted, the Southern Environmental Law Center estimated the toxic emissions have caused $44 million in annual health costs.

In April 2026, environmental groups and the NAACP sued to stop the turbine use, though the US Department of Justice attempted to block the lawsuit by claiming xAI technology was needed for national security.

Mixed Community Response

The development has divided the community. While some residents suffer from noise and health concerns, others welcome the economic boost. Southaven Mayor Darren Musselwhite praised the datacenters for bringing "unprecedented tax revenue" and new jobs to the area, one of the poorest states in the nation.

The mayor characterized the home buyouts as a "goodwill gesture" from a "good corporate citizen" rather than an attempt to create a company town. However, opponents remain skeptical given xAI's history of operating without proper permits and facing potential fines for storm water violations.

Since October 9, five neighborhood homes have been purchased by MZX, xAI's subsidiary operating the site. Gavin Foust, a paramedic who lives near Haley, predicted more sales would follow as elderly neighbors seek to escape the turbines, though he himself refuses the offer due to its non-suit clause.