Finance

Mississippi residents sue xAI and SpaceX over data centre noise nuisance

Plaintiffs seek damages for over 10,000 class members, citing health impacts and reduced property values from relentless turbine noise in Southaven.

Author
Owen Mercer
Markets and Finance Editor
Published
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Source: Yahoo Finance · original
Musk’s xAI, SpaceX hit with class action over data center ‘nuisance’
Class action alleges gas-fired plant powering AI infrastructure creates public nuisance

Three Mississippi residents have initiated a class action lawsuit in federal court in Oxford, naming Elon Musk’s xAI and SpaceX as defendants. The legal filing, made public on Tuesday, alleges that a gas-fired power plant fueling nearby data centres in Southaven has created a public nuisance through excessive noise, resulting in health issues and diminished property values for local residents.

The case names xAI subsidiary MZX Tech as a defendant, though Musk himself is not listed. The plaintiffs are seeking damages for emotional distress and reduced property values, alongside the disgorgement of an unspecified amount of profits. The lawsuit represents a class estimated at more than 10,000 members, with the exact number yet to be legally certified.

According to the filing, the artificial intelligence boom is subjecting communities across the United States to near-constant noise and vibrations. The plaintiffs argue that the gas-fired turbines at the Southaven plant power data centres in and around the area, creating an "omnipresent and inescident" disturbance that negligently failed to be curbed by the technology firms involved.

Robert Wiygul, a lawyer for the plaintiffs, stated that the noise invades the sanctity of homes and removes the fundamental peace of a decent life. He emphasised that while homes are meant to be sanctuaries, the 24-hour noise invasion undermines that protection for thousands of residents affected by the infrastructure.

xAI reportedly invested more than $20 billion to construct the plant at Southaven with the backing of Mississippi Governor Tate Reeves. Both xAI and SpaceX did not immediately respond to requests for comment regarding the allegations.

The lawsuit adds to a growing legal scrutiny of AI infrastructure in the region. The NAACP previously sued xAI in April, accusing the company of violating U.S. environmental rules regarding the plant and data centres. That case remains pending, with the U.S. Justice Department signalling in a court filing last month that it may intervene due to significant legal and policy questions surrounding the government’s role in AI infrastructure.

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