The proposal and the conditions
MZX Tech, a subsidiary of Elon Musk's xAI, is contacting homeowners in the Colonial Hills neighborhood of Southaven, Mississippi, on the border with Tennessee. AI News reports this, citing an offer letter circulated by FOX13 Memphis. According to the document, those who agree to sell must release all claims relating to the noise lawsuit: the proposal is described as entirely voluntary and does not indicate any price.
The number of homes involved is up to 418, according to a real estate agent cited in the material. In the area, properties are worth an average of about $180,000; Forbes estimates that if the purchases covered all the homes indicated, the cost would be around $75 million. According to the same agent, 18 owners have already accepted. xAI has not confirmed these figures, and county records cited by The Verge indicate purchases made in October, without a single unambiguous figure.
The residents' lawsuit and the facility's context
The initiative stems from a lawsuit filed in June by three residents, including Jason Haley. The plaintiffs complain of near-constant noise and vibration produced by the gas turbines powering xAI's data centers and seek compensation for damages and for the decline in property values, as well as an injunction requiring the company to reduce the noise. The group intends to represent more than 10,000 people who have lived in the area since August 2025.
The facility generating the disturbance is a former Duke Energy site with 69 temporary gas turbines, which powers the Southaven and Memphis data centers, where xAI trains Grok. Since July 2024 the company has built three large structures between the two cities. xAI denies the noise allegations, says it wants to be a good neighbor and maintains that it has adjusted power output and built sound-absorbing barriers.
Implications and open fronts
For Colonial Hills residents, the choice is concrete: stay next to the turbines or sell and exit the proceedings. For xAI, every signature reduces the pool of plaintiffs and frees up land near the facility. It remains to be seen whether a judge will consider the clauses undue pressure on residents.
The environmental front is broader. The NAACP has threatened a lawsuit under the Clean Air Act, arguing that the turbines operate without permits. In June the Department of Justice sought to intervene to have that complaint dismissed, and Mississippi determined that no authorization was needed. The state could also fine the company up to $6.1 million for building the data centers before obtaining stormwater permits.
