Elon Musk’s artificial intelligence company is buying homes in Southaven, Mississippi, after residents complained about noise from its nearby power plant, with some purchase offers requiring homeowners to give up legal claims against the company.
The purchases are being handled through MZX Tech LLC, a subsidiary of Musk’s artificial intelligence operation, formerly known as xAI and now part of SpaceXAI. Real estate agents have approached homeowners in the Colonial Hills neighborhood, where residents have spent months complaining about noise from gas turbines powering the company’s expanding data centers.
According to an October 28 report from The Guardian, a real estate agent told one resident that the company was targeting 418 homes, with 18 homeowners already agreeing to sell. The newspaper reviewed a recording of that conversation. However, the company has not confirmed those figures or publicly disclosed the total number of properties it intends to purchase.
DeSoto County property records reviewed by The Guardian confirmed that MZX had purchased five neighborhood homes since October 9.
The offers come with a significant condition. A letter obtained by the Mississippi Free Press explains that homeowners accepting certain buyouts must sign an agreement releasing legal claims connected to a pending lawsuit over the facility’s noise.
“MZX denies all of the allegations against it,” the company’s letter states.
The document also explains that MZX needs additional property for business purposes. Homeowners accepting the terms would surrender the right to pursue certain claims related to the Southaven plant, including potential compensation through the residents’ lawsuit.
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The company has not disclosed the purchase prices offered to individual homeowners. Mississippi Today reported that Burch Realty Group was representing MZX in the negotiations, while Cushman & Wakefield had also presented at least one offer.
The controversy stems from the company’s gas-powered facility at 2875 Stanton Road South, which supplies electricity to data centers supporting Musk’s Grok artificial intelligence system.
Residents Jason Haley, Preston Herrington and Taylor Logsdon filed a federal lawsuit in June 2026, alleging that continuous turbine noise and vibrations have disrupted their lives, interfered with sleep and negatively affected their properties.
The plaintiffs are seeking financial compensation and a court order addressing the alleged disturbances. Their attorneys have also requested class-action status, which would allow additional qualifying residents to participate. The court has not certified the proposed class, and the allegations remain unresolved.
Elizabeth Rose, a piano teacher living approximately two miles from the facility, described the disturbance to The Guardian.
“It sounds like an airplane engine, but it’s continuous; it’s incredibly loud,” Rose said.
The reported home purchases have also created uncertainty for renters whose landlords accept offers.
Danielle Dillard, a Southaven mother of four, told Mississippi Today that her landlord agreed to sell his property and subsequently gave her 60 days to move. She had extended her lease only a month earlier.
Dillard said her landlord offered another rental approximately 25 minutes away, but the property was unsuitable for her family. She also reported receiving no financial assistance for relocation expenses.
After her landlord presented an agreement requiring her to vacate, Dillard said she believed she had no choice but to sign.
“It was never optional,” she told Mississippi Today.
Mississippi housing attorneys explained that selling a rental property does not automatically terminate an existing fixed-term lease. Whether tenants can be required to leave depends on their lease provisions and applicable law.
Southaven Mayor Darren Musselwhite has defended the buyout program and disputed suggestions that homeowners are being compelled to sell.
“Nobody is being forced to be bought out,” Musselwhite said during an October city meeting.
“It’s totally voluntary,” he added.
Musselwhite has described the purchases as an opportunity for dissatisfied residents to relocate while also providing housing for company employees. He maintains that the facility has not violated Southaven’s municipal noise ordinance.
Beyond the neighborhood complaints, Musk’s operation is facing a separate federal environmental lawsuit brought by the NAACP and its Mississippi chapter.
The organizations allege that the company operated gas turbines without permits required under the Clean Air Act.
On October 19, federal Judge Debra Brown rejected an effort by the Trump administration, acting through the Environmental Protection Agency, to dismiss that lawsuit. The ruling allowed federal officials to participate in the case but prevented them from ending the NAACP’s legal challenge.
That decision did not establish that the company violated environmental laws.
Meanwhile, Mississippi regulators have approved permits for a permanent gas-fired power facility, and the company has agreed to replace temporary turbines as part of its transition to permanent infrastructure. Local officials have also reported efforts to reduce noise through sound barriers and operational adjustments.
