Musk's xAI and SpaceX sued over disruptions from data center plant

Musk’s xAI and SpaceX sued over ‘inescapable’ noise from data center plant

Published June 10, 2026 8:40pm ET



Residents of a Mississippi city bordering Tennessee filed a class-action lawsuit against Elon Musk‘s xAI and SpaceX, alleging that a data center and power-generation facility near Memphis has subjected thousands of people to “pervasive and inescapable” noise and vibrations.

Three residents of Southaven, Mississippi, just south of the Tennessee border, filed the lawsuit on behalf of an estimated class of more than 10,000 people. The complaint alleges Musk’s companies negligently failed to mitigate the disturbances, creating both a public and private nuisance.

According to the lawsuit, the constant noise and vibrations have disrupted residents’ sleep, interfered with daily activities, and diminished their ability to enjoy their homes.

“Activities that were once routine like sitting or dining outside, opening windows, relaxing indoors, or resting at night have been materially impaired or rendered impossible by the continuous industrial noise and vibration,” the complaint states. The plaintiffs also allege the disturbances have reduced nearby property values.

The lawsuit says companies racing to build AI infrastructure are increasingly locating large-scale data centers and power facilities near residential communities, exposing residents to persistent noise and other quality-of-life effects.

“The artificial intelligence boom is wreaking havoc on communities across the United States,” the complaint states, alleging that thousands of residents have been subjected to near-constant noise and vibrations.

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Gas turbines are seen outside the xAI data center Wednesday, May 7, 2025, in Memphis, Tennessee. (AP Photo/George Walker IV)

The plaintiffs are seeking unspecified damages for emotional distress, diminished property values, and other alleged harms.

The lawsuit says xAI invested more than $20 billion to develop the Southaven facility with support from Gov. Tate Reeves (R-MS). Gas-fired turbines at the site supply power to data centers operating in and around Southaven, according to the complaint.

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In April, the NAACP sued xAI, alleging the tech giant is “illegally operating 27 gas turbines without an air permit.”

“The company’s failure to get a permit for its power plant — which is located near homes, schools, and churches — creates added health risks for families in North Mississippi and Memphis and is a clear violation of the Clean Air Act, which requires major sources of pollution to obtain air permits before being constructed or operated,” the NAACP said.