Elon Musk’s xAI and SpaceX are facing a new lawsuit in Mississippi, adding to a growing wave of opposition to AI data center projects and the infrastructure that powers them across the U.S.

Mississippi Residents Accuse xAI, SpaceX Of Creating Public Nuisance

Three Mississippi residents have filed a proposed class-action lawsuit against xAI, SpaceX and MZX Tech, alleging that a power facility supporting nearby AI data centers has subjected surrounding communities to constant noise and vibrations.

Filed in federal court in Oxford, Mississippi, the lawsuit claims the companies failed to adequately address excessive and offensive noise generated by gas-fired turbines operating near Southaven.

"Defendants’ noise is omnipresent and inescapable, penetrating the walls of Plaintiffs’ and Class Members’ homes and shattering the peace and quiet previously present in Plaintiffs’ and Class Members’ lives," the lawsuit read.

The plaintiffs are seeking damages for emotional distress, diminished property values and other alleged harms on behalf of a class estimated to include more than 10,000 residents.

Musk is not personally named as a defendant in the lawsuit.

The lawsuit was made public on Tuesday and first reported by Reuters.

SpaceX and xAI did not immediately respond to Benzinga's request for comments.

AI Data Center Backlash Spreads Across The US

Earlier in April, it was reported that in Missouri, residents of Festus pushed back against a proposed $6 billion AI data center project, with voters removing four city council members after the development was approved.

Elsewhere, officials in New Brunswick rejected a data center proposal in favor of a public park, while Prince George’s County paused similar projects following community opposition.

Michigan residents have also resisted data center plans linked to Oracle Corp (NYSE:ORCL) and Microsoft Corp (NASDAQ:MSFT), while Utah tightened oversight of AI-related developments backed by investor Kevin O’Leary amid concerns over environmental and resource impacts.

AI Infrastructure Comes Under Scrutiny

The growing resistance has also reached Washington. Earlier this year, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y) introduced the AI Data Center Moratorium Act, which seeks to halt construction of new data centers nationwide.

Meanwhile, xAI is already facing a separate lawsuit from the NAACP alleging environmental violations tied to its Mississippi operations, a case that has drawn interest from the U.S. Justice Department because of its broader implications for AI infrastructure policy.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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