xAI SpaceX Faces Lawsuit Filed Over Data Center Issues

xAI SpaceX Faces Lawsuit Filed Over Data Center Issues

Shivangi
Jun 10, 2026 10:34 AM IST
Category Business

Synopsis

A xAI SpaceX class action lawsuit has been filed by Mississippi residents who claim a power plant supporting nearby AI data centers created a persistent data center noise nuisance. The lawsuit alleges the noise and vibrations caused emotional distress, health concerns, and declining property values. More than 10,000 people could be included in the proposed class action. The case centers on the xAI Southaven power plant, which supplies electricity to local data centers. The lawsuit is the latest Elon Musk legal action linked to growing concerns over the impact of AI infrastructure projects.

01
Chapter one

Key Highlights

  • xAI class action lawsuit filed by residents of Mississippi against SpaceX
  • Plaintiffs allege a connected power plant servicing local data centers is contributing to a perpetual noise nuisance.
  • The lawsuit claims that there are health impacts, emotional distress and changing property values.
  • The class action could cover more than 10,000 people.
  • The case follows a separate lawsuit the NAACP filed against an AI data center earlier this year.
02
Chapter two

Class Action Lawsuit Against XAI Focuses on Data Center Running

Mississippi residents have filed a class action lawsuit against xAI SpaceX, alleging that the power plant that runs adjacent to its data centers is producing dangerously loud noise and vibrations that have interfered with the plaintiffs' day-to-day lives.

The complaint, filed in federal court at Oxford, Mississippi by a group entitled xAI Southaven noise team, which actually represents local residents, accuses Musk's companies of causing noise due to the operation of gas-fired turbines that were installed as part of the xAI Southaven power plant. The residents claim the noise has become constant and inescapable and it damages their health and impacts property prices.

03
Chapter three

Mississippi Residents Lawsuit Seeks Damages

The resident's lawsuit filed on behalf of a potential class that could top 10,000 people is one of the three suits taken against the residents in Mississippi. The lawsuit argues that xAI and SpaceX were negligent by not minimizing the disturbance, and additionally made a public nuisance with loud and vulgar noise.

04
Chapter four

Dispute centers on xAI Southaven Power Plant

According to the lawsuit, xAI committed more than $ 20 billion for the construction of the xAI Southaven power plant with backing from Mississippi Governor Tate Reeves. Data centers in the Southaven area are powered by gas-fired turbines at the facility.

People should be able to come home and find peace in their house, find privacy, said attorney Rebecca L. Geller, who is representing the plaintiffs in the case, arguing that 24-hour noise robbed affected residents of those rights. 

05
Chapter five

The AI data centre lawsuit is the newest feature in what has for several months been increased scrutiny of xAI's activities. A separate lawsuit from the NAACP in April accused the company of unlawfully discharging pollutants at its Southaven facility and surrounding data centers, violating U.S. environmental laws.

Two weeks ago, the U.S. Justice Department suggested it might step in that case, arguing that it presents wider legal and policy issues regarding the government's role in AI infrastructure. The case may not name Elon Musk personally, but it's a follow up on the string of Elon Musk legal action against companies he leads.


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Written by Shivangi

At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.