Residents in 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.
The plant, located near the Memphis region data centers, has become the focus of growing opposition from residents as Musk’s AI infrastructure expands in the area.
CBS News reported that 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 also led to a federal lawsuit filed by Southaven residents, including Jason Haley and Taylor Logsdon, against xAI and its subsidiary MZX Tech.
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. He said the sound was similar to an airplane hovering over his home.
Logsdon, who lives in the area with her family, told CBS News that the noise has contributed to migraines, anxiety and persistent ringing in her ears. She said her children have also experienced ringing in their ears and difficulty sleeping.
The lawsuit, filed in June, alleges that residents have been subjected to near-constant noise and vibrations from the power plant. Haley, Logsdon and another resident are seeking damages and other relief.
Powering Musk’s AI expansion
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. The company subsequently expanded its footprint with additional facilities, including Colossus 2 and other projects.
READ: Data center noise triggers sleepless nights for Memphis-area residents (September 15, 2026)
According to CBS News, SpaceXAI’s projects in Southaven are expected to represent more than $20 billion in investment. Mississippi Gov. 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. Residents say the rapid development has come with significant consequences for people living nearby.
Haley previously documented noise levels exceeding 60 decibels from his backyard late at night, according to CBS News. The World Health Organization recommends an annual average nighttime noise level below 40 decibels outside bedrooms to prevent adverse health effects.
Residents challenge noise mitigation
SpaceXAI has undertaken measures intended to reduce the noise, including a sound wall, berm and trees.
But Logsdon told CBS News that the measures had done little to reduce the noise.
The company said in July that it was investing millions of dollars in sound walls and silencers around the plant.
CBS News reported in October that residents continue to complain about the noise 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 has extended beyond noise concerns.
The National Association for the Advancement of Colored People sued xAI and MZX Tech in April, alleging that the plant emits significant amounts of harmful pollutants. The case involves the facility’s gas turbines and environmental permitting.
READ: Meta’s $50 billion Louisiana AI data center sparks scrutiny (July 27, 2026)
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 said MZX Tech was required during the permitting process to demonstrate that the proposed facility would comply with air-quality standards.
The agency has also entered an agreement with MZX Tech under which 69 temporary turbines would be removed and replaced with 41 permanent turbines over a year.
Lawsuit adds pressure on SpaceXAI
The residents’ lawsuit adds another legal challenge to Musk’s AI infrastructure operations in Mississippi. Reuters reported in June that the class-action complaint alleged the power plant created a public nuisance through constant noise and negatively affected residents’ health and property values. The lawsuit represents more than 10,000 potentially affected individuals, according to the report. Musk is not personally named as a defendant in the residents’ lawsuit.
The dispute illustrates a broader challenge facing large AI data center projects: how to balance rapidly expanding computing infrastructure with the concerns of communities located near the facilities.
For Southaven residents, the issue remains immediate. Haley has said the noise interferes with his ability to sleep, while Logsdon has said she wants her family to regain the ability to sleep normally and enjoy their home.
As SpaceXAI continues expanding its data center footprint in the Memphis region, residents and the company remain divided over whether the measures taken so far are sufficient to address the noise.