xAI Buys Southaven Homes to Block Data Center Lawsuit — SkimNews
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- xAI is expanding its data center infrastructure in Southaven, Mississippi, with its 'Macrohardrr' facility and a gas-fired power plant, drawing complaints over persistent noise and vibrations from residents.
- MZX, a subsidiary of xAI, is offering to buy 418 homes in Southaven, requiring sellers to sign a release agreement that bars them from joining or benefiting from the ongoing Haley lawsuit over data center operations.
- Eighteen homeowners have already agreed to sell their properties, while renters report being forced out within 60 days after landlords accepted MZX’s purchase offers.
- The NAACP has filed a federal lawsuit against xAI, accusing it of operating dozens of unpermitted methane gas turbines at the Southaven site, a case recently protected from dismissal by a federal judge.
- xAI faces up to $6.1 million in potential civil penalties for environmental violations and over $220 million in unpaid contractor claims across its Memphis and Southaven developments.
- Residents in Southaven filed the 'Haley action', alleging near-constant noise and vibrations from xAI’s power plant and data center, prompting MZX’s targeted buyout campaign to limit legal exposure.
Why it matters: xAI’s home buyouts directly reduce the pool of potential plaintiffs in the Haley lawsuit, weakening community legal standing while avoiding operational changes. With $220 million in unpaid bills and active environmental violations, the company’s expansion is advancing despite financial and regulatory strain, shifting the burden onto displaced residents.
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