Musk’s xAI, SpaceX Hit with Class Action over Data Center ‘Nuisance’
By Reuters | 09 Jun, 2026

Mississippi residents sued in Federal court alleging that a power plant powering nearby data centers operated by SpaceX and xAI is blasting “omnipresent and inescapable” noise that has eroded their health and home values.

FILE PHOTO: Colossus, xAI's AI training supercomputer, on the day analysts invited to review Elon Musk's xAI "Macrohard" project visit the data center in Memphis, Tennessee, U.S., April 23, 2026. REUTERS/Karen Pulfer Focht/File Photo

Elon Musk’s xAI and SpaceX have been sued by Mississippi residents who say a power plant fueling nearby data centers is blasting “omnipresent and inescapable” noise that has eroded their health and home values.

The lawsuit, made public on Tuesday in federal court in Oxford, Mississippi, claims Musk’s companies negligently failed to curb the disturbance and created a public nuisance through excessive and offensive noise. Three residents filed the case on behalf of a class estimated at more than 10,000 members.

“The artificial intelligence (AI) boom is wreaking havoc on communities across the United States” by subjecting thousands of residents to near-constant noise and vibrations, the lawsuit said.

The plaintiffs are seeking damages for alleged emotional distress, reduced property values and other harms, as well as disgorgement of an unspecified amount in profits.

xAI and SpaceX did not immediately respond to requests for comment. xAI subsidiary MZX Tech was also named as a defendant. Musk is not a defendant.

A lawyer for the plaintiffs, Robert Wiygul, in a statement, said, “Our homes are supposed to be a sanctuary for us against the world," but “when they are invaded by noise 24 hours a day, it takes that fundamental peace of a good and decent life away from us.”

xAI invested more than $20 billion to build the plant at Southaven with the backing of Mississippi Governor Tate Reeves. Gas-fired turbines at Southaven power data centers in and around Southaven, the lawsuit said.

The NAACP in April sued xAI over the plant and centers, accusing the company of violating U.S. environmental rules. The lawsuit is pending.

The U.S. Justice Department signaled in a court filing last month it may intervene in the NAACP case, saying the dispute raises legal and policy questions around the government’s role in AI infrastructure.

(Reporting by Mike Scarcella; Editing by David Bario and Bill Berkrot)