Elon Musk’s xAI offers to buy 418 homes near its Mississippi data centre amid noise complaints

A quiet neighbourhood near Memphis is caught in the middle of the artificial intelligence boom, with residents facing a difficult choice: sell their homes or continue fighting over noise linked to Elon Musk’s data centre operations. The dispute has drawn attention to the impact of powering AI infrastructure on people living nearby. Musk’s AI company, xAI, has reportedly offered to purchase homes in Southaven, Mississippi, while asking owners to give up certain legal claims related to a lawsuit over noise from a nearby gas-turbine power plant, according to The Guardian. The proposal has raised questions about residents’ rights, the cost of rapid technology expansion and whether financial offers can resolve a neighbourhood’s concerns.

Why is xAI offering to buy homes?

The proposed purchases are focused on Colonial Hills, a residential neighbourhood in Southaven. According to The Guardian, a real estate agent said the company had a target of buying 418 homes. Five homes had reportedly been purchased since October 9. The offers come as xAI expands its AI computing operations around Memphis, Tennessee, and Southaven. The company has been using gas turbines to generate electricity for its data centres.

The reported terms include a release of claims connected to the residents’ legal action. Mississippi Today, which reported on the buyout offers earlier this month, said a letter sent to some homeowners offered to purchase their property in exchange for, among other things, releasing claims linked to a class-action lawsuit. The company has denied the allegations against it and has said it needs property for business purposes. Southaven Mayor Darren Musselwhite has also said the purchases could provide housing for employees and form part of a broader effort to address community concerns.

Residents complain of sleepless nights

The central dispute concerns noise and vibrations from the gas turbines. Three residents filed a lawsuit in June, alleging that the sound was persistent and had affected their ability to live comfortably in their homes. A separate report by CBS News described residents hearing a constant, aircraft-like roar, including late at night. One homeowner told the broadcaster that noise could be heard from his backyard after 10 pm.

The complaints have added to wider concerns about the environmental impact of the turbines. The National Association for the Advancement of Colored People has also brought legal action over alleged air pollution, arguing that the plant’s operations violate federal clean-air requirements. These are allegations being contested through legal proceedings, not final findings against the company. xAI has said it is trying to be a good neighbour. The company has reportedly installed sound barriers and adjusted power output in response to complaints.

What happens to renters?

The proposed purchases have also created uncertainty for people who do not own their homes. Mississippi Today reported that some renters feared being left out of the buyout process even as their landlords considered selling. One renter, Danielle Dillard, told the publication that her landlord accepted an offer and gave her 60 days to move. She said she had recently extended her lease and was struggling to find a comparable home for her family. The situation highlights how a property deal between a company and a homeowner can affect tenants who have no say in the sale.

AI expansion versus neighbourhood concerns

The dispute reflects a growing challenge for the technology industry: AI data centres require enormous amounts of electricity, land and supporting infrastructure, often placing new demands on nearby communities. For Southaven, the project promises investment and jobs, while residents have raised concerns about noise, pollution and the future of their homes. The buyout offer may give some homeowners a way to leave, but it does not by itself settle the wider legal and environmental disputes. As xAI’s operations expand, the question facing the neighbourhood is whether growth can continue without residents bearing the cost.