SpaceX will buy homes near data-center if residents drop lawsuits
What's the story
SpaceX is said to be planning a major property acquisition in Colonial Hills, Southaven. The company wants to buy 418 homes near its data center that powers Grok. However, the deal comes with a catch: sellers have to not join a class-action lawsuit over noise pollution against the company. This move highlights the challenges posed by AI data centers in residential areas and Elon Musk's unique approach to tackle them.
Acquisition details
Real estate agents have been approaching homeowners
Real estate agents have been approaching homeowners in Colonial Hills with offers to buy their homes.
But they have to agree not to join a class-action lawsuit over noise pollution from gas turbines powering the GPUs at the site.
MZX and SpaceXSI, which run the Colossus II site, issued an open letter saying they "require property for its business purposes."
Acquisition purpose
Musk is reportedly living in an Airstream trailer
Southaven Mayor Darren Musselwhite revealed that the acquired properties would be used to house SpaceX and xAI staff as they expand operations in the area.
Musk is reportedly living in an Airstream trailer four nights a week to supervise the data center build-out for Grok AI.
However, this plan has raised concerns among residents over noise pollution from gas turbines powering GPUs at the site.
Noise complaints
Residents have complained about the noise
Residents have complained about a high-pitched hum, sounds like an airplane taking off, and the whirring of turbines. These noises have affected their quality of life.
Three residents even filed a lawsuit in June, alleging that the sound was persistent and had affected their ability to live comfortably in their homes.
Company response
xAI has denied the allegations and said it has adjusted
xAI has denied the allegations and said it has adjusted power output and installed sound-dampening walls to reduce the impact on the neighborhood.
While some businesses and residents have experienced minimal disruption from data centre operations, others have reported an increase.
The company has also made buyout offers as part of its expansion plan around Memphis, Tennessee, and Southaven.
Information
The buyout offers have created uncertainty for non-homeowners
The buyout offers have created uncertainty for non-homeowners. Some renters fear being left out of process even as their landlords consider selling. This situation highlights how a property deal between a company and a homeowner can affect tenants who have no say in the sale.