The promise of billions of dollars in investment and hundreds of jobs was supposed to transform a Mississippi community. Instead, thousands of residents say they have been left dealing with relentless noise, vibrations, sleepless nights and declining property values. Now, they are taking Elon Musk’s companies to court.
A group of Mississippi residents has filed a class action lawsuit against xAI and SpaceX, accusing the companies of creating a public nuisance through a massive power facility that supports nearby artificial intelligence data centres.
The lawsuit, filed in federal court in Oxford, Mississippi, claims that gas powered turbines operating at a Southaven facility generate constant noise and vibrations that have disrupted daily life for people living nearby. According to the complaint, the sound is so persistent that residents describe it as “omnipresent and inescapable.”
Three residents brought the case on behalf of a proposed class estimated to include more than 10,000 people.
The plaintiffs argue that the companies failed to adequately control the disturbance and allowed the facility to operate in a manner that has harmed both residents’ wellbeing and property values. The lawsuit seeks compensation for emotional distress, loss of property value and other alleged damages. It also asks the court to require the companies to surrender profits connected to the facility.
What residents say they are losing is not just property value, but peace of mind. The lawsuit argues that homes that should serve as places of rest have instead become sites of constant industrial noise.
The dispute highlights the growing tension between the rapid expansion of artificial intelligence infrastructure and the communities that host it.
As AI companies race to build larger and more powerful data centres, demand for electricity has surged. In Southaven, xAI reportedly invested more than $20 billion into facilities designed to support its expanding AI operations, with backing from Mississippi Governor Tate Reeves. The gas-fired turbines at the center of the lawsuit help supply power to those facilities.
This is not the first legal challenge facing the project.
Earlier this year, the NAACP filed a separate lawsuit accusing xAI of violating environmental regulations related to the operation of gas turbines at the site. The civil rights organization alleged that the facilities were contributing to air pollution and disproportionately affecting nearby Black communities. Environmental groups supporting the lawsuit argued that emissions from the turbines could pose serious health risks if left unchecked.
Federal authorities have also shown interest in the broader dispute.
Last month, the U.S. Department of Justice indicated it may intervene in the NAACP case, saying the legal battle raises important questions about the government’s role in regulating the rapidly growing AI infrastructure sector.
Neither xAI nor SpaceX immediately responded publicly to the latest lawsuit. Elon Musk himself is not listed as a defendant, although both companies and xAI subsidiary MZX Tech are named in the complaint.
The case arrives as communities across the United States increasingly grapple with the impact of large-scale AI facilities.
Supporters of the projects point to economic benefits, technological leadership and job creation. Critics argue that local residents are often left dealing with increased energy consumption, environmental concerns, industrial noise and strain on public infrastructure.
The lawsuit reflects a larger debate unfolding across America: who bears the cost of the AI boom, and whether communities have enough protection when technology companies move in at unprecedented speed.
For now, the residents behind the lawsuit are asking the courts to step in where they believe regulators and corporations have failed.
And as AI companies continue building ever larger facilities to power the next generation of technology, the outcome of this case could become an important test of how far communities can push back against the industry’s rapid expansion.
