# xAI offers to buy Southaven homes tied to data center lawsuit

> The offers reportedly require owners to waive claims over noise from a nearby data center. Southaven’s mayor says the buyout is part of a broader plan.

Oossa · 2026-10-28 · https://oossa.com/en/xai-offers-to-buy-southaven-homes-tied-to-data-center-lawsuit

xAI subsidiary MZX is offering to buy homes near its data center and power plant in Southaven, Mississippi, with homeowners asked to give up legal claims related to the site, The Verge reports. The offers are connected to a lawsuit filed by three residents who say the facilities cause near-constant noise and vibrations.

A realtor working for MZX reportedly told one resident that the company plans to purchase 418 homes; 18 homeowners had already planned to sell, according to The Verge. Some renters say their landlords agreed to sell and gave them 60 days to leave. A letter received by several households says sellers must sign a separate release at closing. That release would prevent them from seeking damages in the existing lawsuit or bringing their own claims related to the plant.

## How the city describes the plan

Southaven’s mayor said on October 1 that MZX’s property purchases had been part of a broader plan for months. The mayor described the buyout as a parallel effort, not a replacement for reducing noise, and said the company was converting temporary turbines to quieter permanent ones. The mayor called noise a legitimate concern but said the site had not violated the city’s noise ordinance.

The city says the homes could also provide housing for workers moving to Southaven for specialized jobs. The company’s letter, as quoted by the Mississippi Free Press, says MZX denies the allegations against it and explains that the purchase offer is in exchange for a release of claims. The company and city therefore frame the transaction differently from the residents suing over the site: the city presents it as part of a community plan, while the letter makes the legal waiver a condition of sale.

## The dispute around the facilities

The Southaven project is part of xAI’s larger data center expansion around Memphis, where the company has built two Colossus facilities. The company also faces a separate lawsuit from the NAACP, which accuses it of operating unpermitted methane gas turbines in Southaven. A federal judge recently blocked the Trump administration’s attempt to dismiss that case, The Verge reports.

The buyout offer puts a practical choice before homeowners: sell under terms that waive certain claims, or keep their property and retain the ability to pursue them. The city says noise mitigation will continue regardless of the buyout.

## The facts

- The Verge reports that a realtor said MZX plans to purchase 418 homes in Southaven and that 18 owners had plans to sell.
- A release described in a letter would prevent sellers from seeking damages in the residents’ lawsuit or bringing their own claims related to the plant.
- Southaven’s mayor said MZX’s buyout plan had been underway for months and described it as separate from ongoing noise mitigation.
- Three residents have sued over noise and vibrations; the NAACP has filed a separate lawsuit over methane gas turbines.

## Why it matters

For homeowners approached by MZX, accepting an offer could mean selling their property while giving up legal claims related to the facility. Renters may also face a move if their landlords sell; the available details do not say what relocation help, if any, is offered.

## Sources & references

1. [xAI is buying out homeowners who promise not to sue over data center noise](https://www.theverge.com/ai-artificial-intelligence/1020596/xai-mississippi-neighborhood-data-center-lawsuit) – The Verge, 2026-10-28
2. [City of Southaven](https://southaven.org/Blog.aspx?IID=244&utm_source=openai) – City of Southaven

Last updated: 2026-10-28