Lawsuits

Some Southaven homeowners near SpaceXAI's power plant say the company's buyout offers fall below their homes' market value. One resident reported receiving a $185,000 offer for a house he valued at $225,000, and said he was informed that selling would disqualify him from a proposed class-action lawsuit over noise from the facility.

DeSoto County News · DeSoto Co., MS

A federal judge denied xAI's motion to dismiss a lawsuit filed by the NAACP alleging the company operates turbines without proper permits and violates the Clean Air Act at its Memphis data center campus. The judge ruled the power plant providing electricity to the data center is not mobile and therefore subject to permitting requirements.

Engadget · Shelby Co., TN

Headline onlyBenzinga · Shelby Co., TN

A federal judge ruled that a lawsuit by the NAACP against xAI can proceed, rejecting the company's arguments that combustion turbines at its Colossus data center near Memphis are exempt from air permits. The NAACP alleges xAI operated at least 35 combustion turbines without proper preconstruction or operating permits.

NewsBytes · Shelby Co., TN

American Press · Richland Parish, LA

A federal judge denied the Trump Justice Department's motion to dismiss a lawsuit brought by the NAACP against xAI under the Clean Air Act, allowing claims to proceed regarding 27 unpermitted turbines near Southaven, Mississippi that allegedly emit over 1,700 tons of nitrogen oxide annually.

Startup Fortune · DeSoto Co., MS

A federal judge denied xAI's motion to dismiss the NAACP's Clean Air Act lawsuit over gas turbines powering the company's Colossus 2 data center in Southaven, rejecting two of the company's main legal defenses and allowing the case to proceed. The NAACP's request for a preliminary injunction to halt turbine operations pending proper permitting remains pending.

DeSoto County News · DeSoto Co., MS

A federal judge allowed the NAACP's lawsuit against xAI to proceed, ruling the case has legal standing. The suit alleges xAI operated at least 35 combustion turbines at its Memphis-area data center without proper air permits, violating the Clean Air Act.

NewsBytes · Shelby Co., TN

A federal judge denied xAI's motion to dismiss an NAACP lawsuit alleging the company operated gas turbines at its Memphis-area Colossus data center without required air permits, violating the Clean Air Act. The judge ruled plaintiffs have statutory standing and the turbines are not exempt mobile sources.

TechCrunch · Shelby Co., TN

A federal judge in Mississippi rejected SpaceXAI's motion to dismiss an NAACP lawsuit alleging the company operated gas-fired turbines at its Memphis-area data centers without required air permits, violating the Clean Air Act. The judge found the plaintiffs have legal standing to sue and the turbines do not qualify as exempt mobile sources.

CNBC · Shelby Co., TN

A U.S. District Court in Mississippi denied xAI's motion to dismiss a Clean Air Act lawsuit filed by the NAACP, which alleges the company operates an unpermitted power plant supporting its Colossus 2 data center. The court rejected arguments that citizen suits were unconstitutional and that gas turbines were exempt from permitting requirements.

Earthjustice · Shelby Co., TN

A judge dismissed a shell company from a lawsuit over a Birmingham data center construction project Wednesday, finding it couldn't be held legally responsible for zoning decisions or construction nuisances. The judge also dismissed three of eight counts against the remaining defendants while keeping residents' primary challenges to the project's permits alive for trial in March.

WBHM · Jefferson Co., AL

SpaceX is offering to buy 418 homes in Colonial Hills near its Southaven data center, but only to sellers who agree not to join a class-action lawsuit over noise pollution from gas turbines. The mayor said acquired properties would house SpaceX and xAI staff.

NewsBytes · DeSoto Co., MS

Musk's artificial intelligence company is purchasing homes in Southaven, Mississippi, through a subsidiary after residents complained about noise from its nearby power plant and gas turbines. Some purchase offers require homeowners to relinquish legal claims against the company, with property records confirming five neighborhood sales since October 9.

Baller Alert · DeSoto Co., MS

Headline onlyBigGo Finance · Mississippi

Civil rights groups sued Elon Musk's Memphis xAI data centers alleging violations of the Clean Air Act due to emissions from 57 gas turbines. A federal judge ruled the EPA may intervene in the case but cannot unilaterally dismiss it, rejecting the Trump administration's attempt to terminate the litigation.

Above the Law · Shelby Co., TN

Alphabet's stock fell nearly 13% this week, erasing $482 billion in market value in what the company says is its steepest one-day percentage decline since 2004, amid investor concerns about returns from artificial intelligence investments and a $9 billion free cash flow deficit from increased data center spending.

WBMA

Former Mobile City Council member William Carroll was arrested Wednesday on two counts of second-degree making terrorist threats after allegedly making inappropriate and threatening comments toward employees at a Hooters on Oct. 14. According to authorities, Carroll told employees he rapes little girls and kills people, causing one employee to fear for her safety.

WBRC · Mobile Co., AL

Tampa City Council approved a motion to halt new artificial intelligence data center applications and develop a temporary moratorium on such facilities. The proposal, introduced by Chair Alan Clendenin, directs staff to prepare regulations and schedule public hearings in December and January.

Florida Politics · Hillsborough Co., FL

xAI is offering to purchase homes in a Mississippi neighborhood near its data centers, with a contractual requirement that sellers agree not to join a lawsuit over noise from gas turbines powering the facility. The company has reportedly targeted 418 homes in Colonial Hills, with residents complaining of persistent, disruptive noise from the power plant.

The American Bazaar · DeSoto Co., MS

NewsOne · DeSoto Co., MS

State Senator Sam Givhan served as closing attorney for the city of Huntsville in five property sales totaling roughly 455 acres to Meta Platforms between 2018 and 2022, according to court records. Givhan has since publicly opposed further data center developments in the Tennessee Valley.

Alabama Political Reporter · Madison Co., AL

A lawsuit proceeded against Lowndes County Commission over allegations it violated the Open Meetings Act by approving a data center project outside the official agenda. The hearing was continued to December 2 to allow both sides additional time to prepare evidence and expert witnesses.

WSFA · Lowndes Co., AL

Mississippi State Auditor Shad White confirmed his office has begun investigating the Town of Walls, though specific details about the probe and what prompted it remain unclear.

Daily Memphian · Mississippi

SpaceX AI subsidiary MZX Tech LLC faces potential penalties up to $6.1 million from Mississippi regulators over alleged construction permit violations at three data center facilities, with the company reportedly cooperating on a possible settlement. The state also alleges the company constructed gas turbines without required environmental permits at its Southaven facility.

TechRadar · Mississippi

xAI subsidiary MZX is offering to purchase homes in Southaven, Mississippi, requiring owners to waive potential legal claims related to lawsuits over the company's data center and power plant facility before the sale can close.

UA.NEWS · DeSoto Co., MS

Headline onlyForbes · Mississippi

xAI is offering to purchase hundreds of homes near its Southaven, Mississippi data center, requiring buyers to sign release agreements that prevent them from pursuing damages in a pending class action lawsuit over plant noise allegations.

Crypto Briefing · DeSoto Co., MS

A subsidiary of Elon Musk's xAI is offering to purchase homes in Southaven, Mississippi, on the condition that residents release claims related to a lawsuit against the company's nearby data center and power plant. The offer reportedly affects around 418 homes, with some renters already being displaced after landlords agreed to sell.

The Verge · DeSoto Co., MS

Real estate agents in Southaven, Mississippi, representing Elon Musk's xAI have offered to purchase homes with a condition that owners not join a lawsuit against the company over noise from its nearby power plant and datacenters. A realtor stated the company targets purchasing 418 homes in the Colonial Hills neighborhood, with 18 homeowners already agreeing to sell.

The Guardian · DeSoto Co., MS

The NAACP sued xAI in 2025, alleging the company violated the Clean Air Act by building a methane gas plant near its South Memphis data center in a predominantly Black area already experiencing air pollution from industrial facilities. The lawsuit remains ongoing as communities nationwide challenge data center projects affecting vulnerable residents.

Yale Climate Connections · Shelby Co., TN

A Georgia resident arrested for criminal trespass after speaking at a Brantley County commission meeting in July faces court Wednesday to contest charges she says are politically motivated. Tomanek was removed from the meeting for refusing to sit down during her five-minute public comment about data center development and used profanities, according to officials.

WABE · Georgia

Nondisclosure agreements used in Louisiana economic development negotiations have become a campaign issue ahead of the Nov. 3 midterm elections, with Democrat Jamie Davis opposing them in his U.S. Senate race against Republican Julia Letlow, who signed an NDA with Meta before purchasing the company's stock.

WWNO · Orleans Parish, LA

Mississippi environmental regulators are seeking approximately $6.1 million in penalties from MZX Tech, SpaceXAI's parent company, for allegedly disturbing land at three Southaven sites without obtaining required stormwater permits. The company is cooperating with the Mississippi Department of Environmental Quality and discussing settlement through an agreed order.

DeSoto County News · DeSoto Co., MS

Memphis city council held a public listening session on proposed data center regulations, with most speakers supporting new rules while others urged higher community benefit payments. Council members said requiring increased payments would need state-level action to avoid legal challenges.

Action News 5 · Tennessee

Headline onlyLowndes Signal

All three candidates in Arkansas's U.S. Senate race support giving local residents a vote on data center construction. They diverge on AI regulation: Democrat Hallie Shoffner backs a federal oversight agency, Republican Tom Cotton opposes "big government bureaucracy," and Libertarian Jeff Wadlin supports monitoring with industry oversight.

Arkansas Advocate

Meta's decision to build a major data center in rural Richland Parish has dramatically increased land prices and sparked lawsuits from sellers who allege they were underinformed about the project. Land previously worth thousands of dollars per acre now commands $40,000 or more, prompting some sellers to invoke Louisiana's unique "lesion beyond moiety" law to rescind their sales.

The Shreveport-Bossier City Advocate · Richland Parish, LA · also at NOLA.com

Memphis City Council approved a 135-day moratorium on data center development after an 18-month proposal failed, disappointing residents and advocates who say the shortened pause inadequately protects predominantly Black neighborhoods from environmental hazards associated with AI expansion.

Word In Black · Shelby Co., TN · also at America's Black Holocaust Museum

Headline onlyThe Commercial Appeal