Residents of Southaven, Mississippi, say a power plant supplying electricity to Elon Musk's SpaceXAI data centers has created persistent noise that is disrupting sleep and affecting their daily lives — and they are taking the fight to federal court.
The plant, located near the Memphis-region data centers, has become the focus of growing opposition as Musk's AI infrastructure expands in the area. SpaceXAI — formerly known as xAI — has said it is investing millions of dollars in sound walls and silencers using what it described as advanced noise-reduction technology. Residents, however, say a sound wall installed at the facility has provided little relief.
The controversy has led to a federal lawsuit filed in June by Southaven residents, including Jason Haley and Taylor Logsdon, against xAI and its subsidiary MZX Tech. The lawsuit alleges that residents have been subjected to near-constant noise and vibrations from the power plant, and the plaintiffs are seeking damages and other relief. Haley, who has lived in Southaven for about two decades, previously told CBS News that the plant's noise repeatedly woke him during the night, describing the sound as similar to an airplane hovering over his home. Logsdon, who lives in the area with her family, said the noise has contributed to migraines, anxiety, and persistent ringing in her ears — and that her children have also experienced ringing in their ears and difficulty sleeping. Haley previously documented noise levels exceeding 60 decibels from his backyard late at night; the World Health Organization recommends an annual average nighttime noise level below 40 decibels outside bedrooms to prevent adverse health effects.
The power plant is part of SpaceXAI's rapidly expanding data center operations around Memphis and Southaven. Musk's Colossus data center began operating in the Memphis area in 2024, and the company subsequently expanded with additional facilities including Colossus 2. According to CBS News, SpaceXAI's projects in Southaven are expected to represent more than $20 billion in investment, and Mississippi Governor Tate Reeves has described the development as the largest economic development project in the state's history. The company has used natural gas turbines at the Southaven facility to generate electricity for its data centers.
SpaceXAI has undertaken mitigation measures including a sound wall, berm, and trees, and said in July it was investing millions more in sound walls and silencers. But CBS News reported in October that residents continue to complain despite the mitigation work. The Safe and Sound Coalition, a resident-led group opposing the plant's impacts, has collected more than 1,400 signatures on a petition calling for the power plant to be shut down.
The dispute extends beyond noise. The NAACP sued xAI and MZX Tech in April, alleging the plant emits significant amounts of harmful pollutants, in a case involving the facility's gas turbines and environmental permitting. The Justice Department has sought to intervene and dismiss that case, saying it involves national security and Mississippi's permitting decisions. The Mississippi Department of Environmental Quality has entered an agreement with MZX Tech under which 69 temporary turbines would be removed and replaced with 41 permanent turbines over a year.
Reuters reported in June that the residents' class-action complaint alleged the power plant created a public nuisance through constant noise and harmed residents' health and property values, representing more than 10,000 potentially affected individuals. Musk is not personally named as a defendant. The dispute illustrates a broader challenge facing large AI data center projects nationwide: how to balance rapidly expanding computing infrastructure with the concerns of the communities living next to it.