xAI Offers Buyouts to Southaven Homeowners Amid Ongoing Noise Lawsuit

Real estate agents acting on behalf of xAI subsidiary MZX Tech LLC are going door-to-door in Southaven, Mississippi, offering to buy homes in the Colonial Hills neighborhood. The buyout initiative targets hundreds of residences near a former Duke Energy site that now houses temporary gas turbines powering artificial intelligence datacenters for Elon Musk's company.

The property offers include a mandatory condition that homeowners release all claims and agree not to join an ongoing class-action lawsuit filed against the company. The lawsuit, initiated in June in the US District Court for the Northern District of Mississippi by local residents, alleges that persistent, low-frequency noise and vibrations from the 69 temporary gas turbines severely diminish their quality of life and property values.

While varying real estate estimates have pointed to targets of 418 or up to 500 homes, public records show that several properties have already been purchased in October. Company representatives have denied the allegations in the lawsuit and stated that the properties are required for business purposes, while maintaining that the buyouts are completely voluntary.

Local residents have expressed mixed reactions to the purchase proposals. Elizabeth Rose, a piano teacher living in the area, compared the constant sound to a low-flying airplane engine and voiced frustration over the sudden industrial expansion near her home. Meanwhile, other residents have rejected the offers, arguing that the proposed amounts are too low to cover fair market relocation costs within DeSoto County.

Leo Awgowhat, a Southaven resident living on Brookhaven Drive, stated that he turned down an initial offer of $185,000 and rejected a subsequent counter-proposal adjustment after arguing that it failed to account for rising regional housing prices. Awgowhat noted that the real estate representatives made it clear that accepting the money would bar him from participating in the class-action litigation.

The buyouts have also created disruptions for renters in the neighborhood. Census estimates indicate that between one-third and two-thirds of the homes in the affected area are occupied by renters. Some tenants have reported receiving short notice to vacate after their landlords accepted purchase offers from the company, leaving them to navigate relocation without direct assistance.

Southaven Mayor Darren Musselwhite has publicly endorsed the buyouts as a voluntary measure that could potentially provide housing for company employees while offering a parallel approach to community concerns. At the same time, municipal and state officials note that the company has worked to mitigate noise levels and accelerate plans to replace the temporary turbines with permanent, quieter equipment. Legal proceedings regarding class certification and a separate air pollution lawsuit filed by the NAACP remain ongoing.