Elon Musk's SpaceX buying out 418 homes near flagship AI data center, but only if they drop participation in lawsuit — report claims the company is targeting an entire neighborhood, but will only buy from people who don't pursue noise pollution complaints

a water tank in Southaven, Mississippi, with the SpaceXSI data center in the foreground
(Image credit: Getty Images)
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SpaceXSI, Elon Musk’s data center business powering Grok, is reportedly buying 418 properties in Colonial Hills, Southaven, which sits about half a mile from the powerplant that the company will use to power its data centers in the area. According to The Guardian, real estate agents have been going door to door, offering owners deals on behalf of the company provided that they do not join a class-action lawsuit over the noise pollution coming from the gas turbines that power its GPUs.

MZX, the SpaceXSI subsidiary that operates the Colossus II site, circulated an open letter to nearby residents, saying that it “requires property for its business purposes,” with Southaven mayor Darren Musselwhite saying that they will be used to house SpaceXSI staff that the company will need as it expands operations. Musk himself is reportedly staying in the area in an Airstream trailer four nights per week to personally oversee the data center build-out needed to power Grok AI.

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Jowi Morales
Contributing Writer

Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

  • bigdragon
    If they're offering enough to acquire an equivalent home far away from the data center, then I'd say go for it. Take the money and run. You don't want to be living around companies that do what they want and then beg for forgiveness afterwards. Companies like those have zero awareness of anything beyond profit and loss projections. The lawsuits will take years to play out meaning you're stuck with the same or declining quality of life in the meantime.

    Normally companies and governments offer a joke of a "fair market value" for homes though. I doubt they're actually paying replacement costs. I wouldn't be surprised if some data center builders made agreements with or acquired home builders in the near future as a way to minimize costs to relocate affected households. Maybe pointing to a new build and telling XAI to buy that for you would work -- a trade of sorts.

    I definitely understand those who think the offers are not enough or want to preserve some sort of sentimental value or family asset. Personally, I don't trust the people in charge (at all levels) to make it right or make you rich following the lawsuit.
    Reply
  • ezst036
    Its a double edged sword. On the one hand, its pretty vindictive of Elon to buy out the houses in the area where they are complainers.

    Even moreso vindictive to only offer buy outs to people who aren't complaining, which makes it smack of being a punishment.

    On the other hand, I have little doubt that the buyout offers are handsome indeed. Someone is going to leak an offer to the press if its really offensive, so there would have to be media savvy involved in the whole ordeal.

    SpaceX can save a few thousand dollars to spend millions dealing with unscrupulous journalists, or SpaceX can offer 25% above and save millions beating the gotcha journalists at their own deceptive games.

    Don't misunderstand me.......... I think SpaceX has a real shot at being stupid here. Not everybody has the necessary media savvy to think forward that way. SpaceX may very well offer piddly buyouts and spend years dealing with the chaos afterwards in headline after dishonest headline.
    Reply
  • warezme
    At this point I would have thrown my "wooden shoe" into those generators.
    Reply
  • derekullo
    The literal interpretation of ...
    https://external-preview.redd.it/captain-james-t-kirk-is-often-called-james-t-kirk-because-v0-5uoZx3crbPOFhcjP8Ou8fiR1i7cbpgX17oODj4hyIr0.jpg?width=1080&crop=smart&auto=webp&s=6b3d3e60239139fe236f391d58e147305e6c7e46
    Reply
  • tamalero
    bigdragon said:
    If they're offering enough to acquire an equivalent home far away from the data center, then I'd say go for it. Take the money and run. You don't want to be living around companies that do what they want and then beg for forgiveness afterwards. Companies like those have zero awareness of anything beyond profit and loss projections. The lawsuits will take years to play out meaning you're stuck with the same or declining quality of life in the meantime.

    Normally companies and governments offer a joke of a "fair market value" for homes though. I doubt they're actually paying replacement costs. I wouldn't be surprised if some data center builders made agreements with or acquired home builders in the near future as a way to minimize costs to relocate affected households. Maybe pointing to a new build and telling XAI to buy that for you would work -- a trade of sorts.

    I definitely understand those who think the offers are not enough or want to preserve some sort of sentimental value or family asset. Personally, I don't trust the people in charge (at all levels) to make it right or make you rich following the lawsuit.
    the point is.. will he ever pay?
    "drop the lawsuit and ill pay you". Sounds almost mafia like switcharoo.

    He should BUY the houses first under a contract and then they can then drop.. as long they of course get enough money to get away.


    But the point is.. how far they need to be away to escape not only the noise, but the pollution from the turbines.
    Reply
  • nameless0ne
    I don't get it? Can the lawsuit stay if they sell the house? Won't the buyout be the remedy?
    Reply