SpaceX Offers Buyouts to 418 Homeowners Near AI Center on Condition They Drop Noise Lawsuit

SpaceX's artificial intelligence infrastructure operation is attempting to acquire 418 residences in a Southaven, Mississippi neighborhood bordering its data center facilities, attaching a strict requirement that homeowners drop claims in an active noise-pollution lawsuit.

The acquisition campaign focuses on Colonial Hills, a residential subdivision situated roughly half a mile from the generation station that powers Colossus II, an AI computing hub operated by SpaceX subsidiary MZX. As tech companies accelerate data center construction to support energy-intensive computing clusters, the buyout effort underscores growing friction between rapid utility-scale electrical expansion and adjacent communities. The conditional buyout offers were reported by [TechRadar Pro](https://www.techradar.com/pro/spacex-is-snapping-up-hundreds-of-homes-near-its-new-flagship-ai-data-center-but-only-if-the-owners-agree-to-one-incredible-catch), drawing on earlier coverage from Tom's Hardware and The Guardian.

Real estate agents acting on behalf of the company have approached homeowners across the neighborhood to pitch property acquisitions. To qualify for the transaction, property owners must sign legal agreements pledging to withdraw from or decline to participate in a class-action lawsuit challenging the sound levels produced by gas turbines powering the computing complex.

Colossus I and II have drawn sustained community pushback over sound levels and air emissions, alongside public scrutiny over the operation of unpermitted gas-fired turbines. Local plaintiffs allege that the continuous hum of the power-generation equipment creates unrelenting disruptions that impair sleep and daily life, comparing the background noise to an idling aircraft engine. In response to environmental concerns, the company has pledged to retire unpermitted turbines within 12 months as a permanent 1.2-gigawatt power station enters commercial service.

SpaceX has disputed the allegations raised in the litigation, saying it has introduced mitigation measures to suppress sound emissions. The company's efforts include curtailing generation output at select times and erecting sound-dampening walls around electrical equipment. Southaven Mayor Darren Musselwhite noted that municipal noise audits have recorded sound levels below the city's legal limit of 70 decibels, though environmental health specialists maintain that sustained nocturnal exposure above 50 decibels can still cause sleep disturbance and adverse health impacts.

Musselwhite has defended the acquisitions, asserting that the housing will accommodate incoming corporate technical personnel while offering a financial exit for neighbors unhappy with adjacent industrial development. He rejected claims that the transactions would transform Colonial Hills into an exclusive company town. For affected homeowners, the offers present an immediate tradeoff between liquidating property on corporate terms or continuing their legal battle over industrial noise.