SOUTHAVEN – U.S. billionaire Elon Musk is embroiled in a new controversy linked to his massive artificial intelligence hub. In Southaven, Mississippi, residents are protesting the relentless noise from gas turbines powering powerful computers at the data center. In response, Musk’s company has begun offering to buy surrounding properties. According to The Guardian, the firm may be seeking up to 418 family homes—but the offer includes one controversial requirement: sellers must agree not to participate in a lawsuit against the company over the noise issue.
The situation has sparked debate across the U.S. about how far AI infrastructure expansion should go.
While tech firms invest billions in new data centers, people living nearby worry about noise, pollution, and disruptions to daily life.
Residents say it feels like living next to a jet engine
Southaven, near Memphis, Mississippi, is home to a sprawling data center complex being expanded by Musk’s technology company.
The project features powerful computer systems used to develop artificial intelligence—including the Grok chatbot.
Running these systems requires huge amounts of electricity.
To provide the energy, the company uses gas turbines to generate power for the data centers.
These turbines are at the center of local complaints.
Residents say the turbines emit a constant roar reminiscent of airplane engines.
Some claim the noise wakes them up in the middle of the night.
Elizabeth Rose, a resident, stated she frequently wakes between two and three in the morning due to the sound.
Musk’s company, however, denies that the noise constitutes unlawful disturbance.
Musk’s company seeks to buy almost an entire neighborhood
The company has started contacting property owners in the Colonial Hills neighborhood through real estate agents.
According to The Guardian, one agent told a local resident that the goal was to buy as many as 418 homes.
The conversation was reportedly recorded.
The company has not officially confirmed any plans to purchase all 418 properties.
The agent also said 18 homeowners have already shown willingness to sell.
DeSoto County records indicate that five property transfers have been completed since October 9.
This shows purchases are already underway, but the final scope remains unclear.
Sellers asked to drop legal claims as part of the deal
The biggest stir has come from the conditions attached to Musk’s company’s offers.
According to documents obtained by U.S. media, the purchase offers require sellers to agree not to participate in an ongoing class action lawsuit over the noise from the gas turbines.
The company is aiming to reduce legal risks surrounding the facility’s operation.
Some residents reject the offer on principle.
They argue they should not have to choose between peace in their homes and their right to seek legal protection.
Other residents welcome the opportunity to move to a quieter area.
There is no confirmation that homeowners are legally forced to sell. The offers are described as voluntary, but their terms remain controversial.
Homes in the area valued at around $180,000
The average family home in the area is valued at approximately $180,000, according to current data.
This represents a ballpark value, not necessarily the price in every offer made by Musk’s company.
If the company were to buy all 418 homes at this average price, the cost would be about $75 million.
This figure is only an estimate.
Actual costs would depend on individual negotiations, property condition, and other deal terms.
For a tech company building vast data center networks, this could be a minor share of overall investments.
But for homeowners, selling means a major life change.
Company already facing lawsuit over noise
In June, three residents filed a lawsuit against the company and its subsidiary, MZX Tech.
They object to protracted noise, vibrations, and other negative effects from the gas turbines’ operation.
The plaintiffs want to expand the lawsuit to include other affected locals.
The complaint estimates that the case could involve more than 10,000 people.
However, this figure does not mean all 10,000 have personally joined the lawsuit.
Musk’s company denies all allegations and claims it has implemented measures to reduce noise.
These include installing sound barriers and modifying the output of some energy equipment.
The legal outcome will be determined by the courts.
Gas turbines also raise pollution concerns
The issue isn’t only noise.
Dozens of gas turbines at the site provide power for the data center’s operation.
The U.S. Environmental Protection Agency (EPA) found that some turbines operated without required federal permits.
Environmental organizations are investigating their operation as well.
They warn about possible emission impacts on air quality and residents’ health.
However, suspicion alone does not mean that any specific health harm has been legally established in individual cases.
The company says it plans to replace temporary turbines with more permanent power infrastructure.
This conflict between tech expansion and environmental protection has also surfaced in Europe.
Aktualizovane.sk recently reported that Finnish police are investigating possible environmental damage at a Google data center construction site.
Why does AI need so much electricity?
Modern AI systems run on vast computer hardware.
Thousands of specialized processors handle huge volumes of data.
It’s not just computing that eats up electricity.
A large share of the energy is also needed for cooling, backup systems, and technical infrastructure.
As AI use grows, demand rises for more data centers.
This puts pressure on electrical grids, energy resources, and the environment in many regions.
The subject is relevant in Slovakia too, with local debates about new energy production to meet rising demand—as discussed in our article on the potential new nuclear block in Bohunice.
Musk is building one of the largest AI complexes
The Memphis-area data center complex is one of Musk’s technology company’s most ambitious projects.
It features Colossus supercomputing systems for training and running artificial intelligence models.
Musk aims to compete with firms developing advanced generative AI systems.
One of the best-known products is the Grok chatbot, integrated into the X platform.
Rapid tech development raises questions beyond just energy use.
European authorities, for example, are investigating Grok over its generation of problematic image content.
You can find more details in our article about Brussels investigating X for AI-generated sexualized images.
Mayor touts jobs, but residents worry about their homes
Southaven city leaders see the data center expansion as an economic opportunity.
The new investments could bring jobs, boost tax income, and create business for local companies.
The mayor supports the growth of the tech complex.
Some residents argue, however, that economic gains shouldn’t outweigh people’s right to peaceful living.
Similar disputes have also been seen in Slovakia, where new energy projects often spark debate over their impact on local communities—as outlined in our article about increasing opposition to wind farms.
Big project decisions raise the question of how to balance tech progress with residents’ rights.
Will Musk create his own company town in America?
Some Southaven locals are now speculating about the creation of a company town.
Informally, they call it “Elonville.”
They fear that if the company buys most of the neighborhood, the original community will gradually disappear.
Local officials say the acquired homes could be used to house data center employees.
However, there is no confirmed plan to create a separate city or force all residents to move out.
For now, these are only community concerns and information about the potential scale of property acquisition.
AI’s growth also raises company responsibility questions
The Mississippi case shows that rapid AI development also has less visible consequences.
Along with new technological possibilities come costs for electricity, infrastructure, and environmental protection.
The debate over tech company accountability is also playing out in politics.
Aktualizovane.sk previously reported that Donald Trump brokered a voluntary safety and self-regulation agreement with tech giants on AI.
Musk’s company’s case also shows that AI safety isn’t just about software—the facilities required to operate it matter too.
Musk’s offer splits the community
Some residents see the buyout as a chance to escape the noisy neighborhood and start anew.
Others refuse, unwilling to give up homes they’ve occupied for decades.
The commitment to withdraw from the lawsuit remains a key issue.
Five home sales are confirmed by public records, but the company has not officially announced plans to buy all 418 properties.
Further developments will show how many residents accept the offers and the outcome of the ongoing lawsuit.
For more on technology news, visit the Aktualizovane.sk page on stretnisa.online.
You can also join discussions about whether you would accept such a sale—if it meant giving up your place in a lawsuit—on our community page Aktualizovane.sk.
Sources: Kronen Zeitung (2 Nov 2026), The Guardian (28 Oct 2026), The Verge, Mississippi Free Press, DeSoto County public records.
This article was translated from the original Slovak version with the assistance of AI.
