Elon Musk's unusual fix for AI data centre backlash: Buy out an entire neighbourhood, but with conditions
Elon Musk appears to have found an unusual solution to growing opposition to AI data centres in residential neighbourhoods: buying out the homes of people living nearby.
Musk’s data centre business, which powers his Grok AI chatbot, is reportedly planning to purchase 418 properties in Colonial Hills, Southaven. The neighbourhood is located about half a mile from the power plant used to supply electricity to the company's data centres in the area.
According to a report by The Guardian, real estate agents have been approaching homeowners with offers to buy their properties. However, the deals reportedly come with a condition: sellers must agree not to join a class-action lawsuit against the company over noise pollution.
MZX and SpaceXSI, which operate the Colossus II site, circulated an open letter to residents stating that the company “requires property for its business purposes”.
Southaven Mayor Darren Musselwhite said the properties would be used to accommodate SpaceX and xAI employees as the companies expand their operations in the area.
Musk is also reportedly staying in the neighbourhood in an Airstream trailer four nights a week to personally oversee the data centre expansion needed to power Grok AI.
The controversy centres on the noise and pollution generated by the gas turbines powering the GPUs at the Colossus I and II sites.
The facilities have faced criticism over their use of unpermitted turbines and the air pollution they generate. Residents have also complained about persistent noise, including a high-pitched hum, sounds resembling an “aeroplane taking off” and the whirring of turbines.
These disturbances have affected residents' quality of life, prompting some to consider selling their homes and moving away.
SpaceX and xAI have promised to remove all unpermitted turbines within a year as their 1.2-gigawatt power plant comes online. However, the commitment does not address the noise complaints that residents have raised.
The company has denied the allegations and said it has taken steps to reduce the impact of its operations on the neighbourhood.
It has adjusted its power output and installed sound-dampening walls to minimise noise pollution, according to the report.
While some businesses and residents have been less affected by the data centre operations, others have reported increased activity.
(With inputs from agencies)
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.