Article · AI translation
IT Home reported on October 29 that, according to The Guardian, SpaceXAI plans to buy homes near a gas turbine power plant in Southaven, Mississippi, but homeowners must agree to waive their right to bring claims in a class action lawsuit against the company over noise before they can sell their homes.
The power plant supplies electricity to SpaceXAI's data center. SpaceXAI plans to buy 418 homes, and at least 18 homeowners have agreed to sell. The company has not confirmed those figures or disclosed its plans for the neighborhood after the purchases.
The purchases are being handled by SpaceXAI subsidiary MZX Tech LLC. In July 2026, Musk's AI and aerospace businesses were merged into SpaceX, and xAI was subsequently renamed SpaceXAI. The combined enterprise was valued at $2 trillion (IT Home note: approximately 13.36 trillion yuan at current exchange rates).
Local residents received purchase letters from real estate agency Burch Realty Group. Commissioned by MZX Tech to buy the homes, Burch Realty Group said one condition was that homeowners waive all claims involved in the lawsuit. The letter explicitly stated: “Once you sign the Waiver of Rights Agreement, you will no longer be able to obtain any damages or other legal relief through the ‘Haley lawsuit.’”
In the letter, MZX Tech denied all allegations and said it was buying the properties for business needs, but did not specify their intended use. Purchase prices would be based on valuations from the U.S. real estate platform Zillow, but the letters homeowners received did not list specific offers.
Homeowners have reason to treat the purchase offer as a starting point for negotiation. Zillow can estimate a home's value, but homeowners must also waive their legal claims when they sign to sell. The buyer has not offered a separate price for waiving those claims.
In June 2026, Southaven residents Jason Haley, Preston Herrington and Taylor Logsdon filed a class action lawsuit in the U.S. District Court for the Northern District of Mississippi, alleging that noise from SpaceXAI's temporary gas turbines was affecting the lives of nearby residents. The complaint estimated that more than 10,000 people live in the affected area.
SpaceXAI denies the allegations. Attorney Robert Wiegell said all residents of the area are eligible to take part in the lawsuit, including renters.
Southaven Mayor Darren Musselwhite discussed the purchase plan in an October 1 blog post and at an October 6 city council meeting, saying he believed SpaceXAI's move demonstrated corporate social responsibility and was a parallel measure alongside efforts to reduce noise. The purchased homes could house company employees, and SpaceXAI had also accelerated its plan to replace the temporary equipment with quieter permanent gas turbines. “No one is being forced to sell their home. It is entirely voluntary.”