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Elon Musk’s AI company xAI, along with SpaceX and xAI subsidiary MZX Tech, has been sued with a massive public nuisance class action lawsuit filed by Mississippi residents.
The class action was filed on June 9, 2026, in the U.S District Court for the Northern District of Mississippi. Three residents filed a class action on behalf of 1,000 community members, alleging that the massive infrastructure built for large local AI Data centers is causing catastrophic disruption to their daily lives.
According to the lawsuit, the plant fueling nearby data centers is blasting ‘omnipresent and inescapable noise that has eroded the daily routines and home values of the residents. The lawsuit, made public on Tuesday, claims that Musk’s company negligently failed to curb the noise and created a public nuisance from offensive and excessive noise.
The lawsuit alleges that, “The artificial intelligence AI boom is wreaking havoc on communities across the United States” by subjecting thousands of residents to constant noise and vibration."
The plaintiffs are seeking damages for reduced property values and other alleged losses, including emotional distress, as well as disgorgement of an unspecified amount in profits.
xAI and SpaceX have not publicly commented on the lawsuit. xAI, a subsidiary of MZX Tech, was also named as a defendant. Musk is excluded from the list of defendants.
A lawyer representing the residents, Robert Wiygul, in a statement, said, “Our homes are supposed to be a sanctuary for us against the world,” but “when they are invaded by noise 24 hours a day, it takes that fundamental peace of a good and decent life away from us.”
xAI invested a whopping $20 billion to build the plant infrastructure in Southaven after securing backing from Mississippi Governor Tate Reeves. Gas-fired turbines at Southaven power data centers in and around Southaven, the lawsuit said.
Also read: Anthropic Signs Billion-Dollar xAI Deal for AI Compute Power
The class action follows the lawsuit initiated in April, in which the NAACP sued xAI over the AI plant and centers, accusing the company of violating U.S. environmental rules. The lawsuit is still pending.
In a filing submitted last month, the U.S. Justice Department signaled it may intervene in the NAACP case, arguing that the matter raises significant questions about federal oversight of AI infrastructure. The potential intervention highlights broader questions about federal oversight of AI infrastructure and environmental regulation.
