SpaceX reportedly offers to buy 418 homes near its Mississippi AI facilities

SpaceX is reportedly seeking to buy 418 homes in Colonial Hills, a Southaven neighborhood near its expanding artificial intelligence operations. The homes are close to a power station supplying electricity to Colossus II, an AI computing complex operated by MZX, a SpaceX subsidiary.

Reports say purchase offers made on the company’s behalf are conditional on homeowners withdrawing from a pending lawsuit over gas turbine noise. Residents involved in the case allege that noise from nearby power facilities disrupts daily life and sleep. SpaceX rejects the allegations and says it has taken steps to reduce disruption, including lowering power output and installing sound barriers.

The complaints concern Colossus I and II. Residents have also raised allegations about air pollution and turbines operating without required permits. SpaceX says it intends to remove the unauthorized turbines within one year as a 1.2-gigawatt power station becomes operational.

Southaven Mayor Darren Musselwhite says municipal monitoring has not recorded noise above the city’s 70-decibel legal threshold. Some specialists warn that sustained exposure to sound around 50 decibels could still affect health. Residents are divided: some have accepted purchase offers, while others continue to oppose the industrial operations. Musselwhite says the homes could accommodate incoming employees and rejects the idea that the purchases would make Colonial Hills a neighborhood dominated by one employer.