xAI subsidiary seeks 418 Southaven homes to settle noise dispute
Homeowners in Mississippi are being asked to release claims against a data center in exchange for property purchases, according to a letter obtained by local media.
By Dominic Foster ·
Residents in Southaven, Mississippi, are receiving offers to sell their properties to a subsidiary of xAI, but only if they agree to drop legal claims regarding the noise and vibrations from a nearby data center. The move affects a neighborhood situated just over the Tennessee border, where the company has constructed the Macrohardrr data center and an accompanying gas-fired power plant.
A letter sent to several households, which was reported by the Mississippi Free Press, outlines the terms of the offer. MZX, the xAI subsidiary handling the real estate transactions, states that it is purchasing property for business purposes. The letter explains that accepting the offer requires homeowners to sign a separate release agreement at closing. This document would release possible claims related to the Southaven Plant, including those connected to a lawsuit known as the Haley action.
The letter warns that once the release agreement is executed, homeowners will be unable to recover damages from the Haley lawsuit or bring new claims on their own behalf. MZX maintains in the correspondence that it denies all allegations against it while proceeding with the purchase strategy.
According to The Guardian, a realtor visiting the neighborhood told residents that xAI intends to buy 418 homes. The same report noted that 18 homeowners already have plans to sell. Tenants in the area report that they are being given 60 days notice to leave after landlords accepted the sale offers. The initial lawsuit was filed by three residents who accuse the company of causing near-constant noise from its massive data center and gas-fired turbines.
The buyout effort occurs as opposition to AI infrastructure grows in the region. Last week, the Memphis City Council rejected a one-year moratorium on data center development. Instead, the council adopted an ordinance to pause construction for 135 days. This decision follows comments by the Mississippi governor earlier this year, who touted the company’s plan to invest more than $20 billion in the area.
xAI also faces financial and legal pressure from other fronts. The company recently reported up to $6.1 million in potential civil penalties for environmental law violations. It also faces claims for more than $220 million in unpaid bills for work at the Memphis and Southaven sites. Additionally, the NAACP is suing the company, alleging it operates dozens of unpermitted methane gas turbines in Southaven. A federal judge blocked the Trump administration’s attempt to dismiss that lawsuit earlier this month.
