A subsidiary of Elon Musk’s xAI is reportedly offering to buy hundreds of homes around Southaven, Mississippi, on the condition that residents agree not to join a lawsuit over its nearby data center and power plant. The claims were reported by The Guardian and detailed in a letter obtained by the Mississippi Free Press.
According to the reports, a realtor going door-to-door told one resident that xAI plans to purchase 418 homes, with 18 homeowners already planning to sell. Renters in the area say they are already being forced out, receiving 60 days’ notice after their landlords agreed to sell.
xAI data center (Credits: The Verge)
xAI Southaven Buyout: What the Letter Says
The letter, sent by xAI subsidiary MZX, states that the company denies the allegations against it but requires property for its business purposes. It offers to purchase homes in exchange for, among other things, a release of all claims related to the lawsuit.
Residents who accept would sign a real estate contract and, at closing, a separate release agreement. That release would cover possible claims connected to the Southaven plant, including claims in the Haley action — and residents would then be unable to recover damages from that lawsuit or bring claims on their own behalf.
The underlying lawsuit was filed by three residents who accuse the company’s massive data center and gas-fired turbines of emitting near-constant noise and vibrations. xAI has expanded rapidly in the region, building two sprawling Colossus facilities in Memphis and bringing its Macrohardrr data center and accompanying power plant to Southaven, just over the Tennessee border.
Growing Backlash Against AI Data Centers
The dispute lands amid growing opposition to AI data centers ahead of the US midterm elections. Last week, Memphis City Council voted down a one-year moratorium on AI data center development, instead adopting an ordinance pausing construction for 135 days.
xAI also faces separate legal action from the NAACP, which accuses the company of operating dozens of unpermitted methane gas turbines in Southaven. A federal judge blocked an attempt to dismiss that lawsuit earlier this month. Reports also note the company faces up to $6.1 million in potential civil penalties for environmental law violations, alongside more than $220 million in claims of unpaid bills for work at its Memphis and Southaven sites.
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Source: The Verge — read the full story there.
