Elon Musk's Spacexai Reportedly Offers To Buy 418 Mississippi Homes With 'A Release of All Claims' Catch

Homeowners accepting buyouts from Elon Musk's SpaceXAI in Southaven, Mississippi, must relinquish noise lawsuit claims under terms Mississippi Today disclosed on 15 October 2026.

The offers follow a lawsuit filed in June 2026 by residents Jason Haley, Preston Herrington and Taylor Logsdon over noise from temporary gas turbines powering the company's data centres. Their complaint, filed in the US District Court for the Northern District of Mississippi, estimates that more than 10,000 people live in the affected area.

The Guardian reported on 28 October that a real estate agent said the company was targeting 418 homes, with 18 owners already agreeing to sell. SpaceXAI has not confirmed either figure or outlined its plans for the neighbourhood.

Inside the SpaceXAI Release Agreement

Burch Realty Group, acting for SpaceXAI subsidiary MZX Tech LLC, sent residents a letter offering to purchase properties 'in exchange for, among other things, a release of all claims'.

The letter warns sellers, 'After executing the Release Agreement, you will be unable to recover any damages or other relief from the Haley lawsuit.'

MZX Tech 'denies all of the allegations against it' and states that it 'requires property for its business purposes'. The letter does not explain those purposes or list purchase prices.

Residents told the Mississippi Free Press that offers appeared to be based on online property valuations, including Zillow estimates.

Attorney Robert Wiygul urged residents to weigh their losses. 'For every individual, they have to look at whether a buyout is going to actually make them whole for what they've lost.'

Renters Face Disruption From SpaceXAI Buyouts

Southaven mayor Darren Musselwhite endorsed the buyouts in a 1 October blog post and at a 6 October Board of Aldermen meeting. He described them as a 'parallel approach' to reducing noise and suggested the homes could accommodate company employees.

'Nobody is being forced to be bought out,' he stated. 'It's totally voluntary.'

Danielle Dillard, a 37-year-old renter, told Mississippi Today she learned in late September that her landlord had accepted a buyout. She received 60 days to leave, one month after extending her lease.

'It was never optional,' Dillard recalled. Neither her landlord nor SpaceXAI offered to cover her moving costs, she added.

Census estimates cited by Mississippi Today put renters in between one-third and two-thirds of homes in the neighbourhoods covered by the proposed class action.

Lawyers interviewed by Mississippi Today explained that Mississippi law generally prevents landlords from ending active fixed-term leases early unless the lease permits it or both sides agree.

Sam Buchanan Jr. of the Mississippi Center for Legal Services Corporation advised tenants to seek an independent opinion before signing anything they do not fully understand.

When questioned about renters, Musselwhite responded, 'That's nothing new. It has nothing to do with any development in Southaven.'

SpaceXAI Noise Lawsuit Awaits a Class Decision

The Mississippi Free Press reported 69 turbines at the site as of 31 July. Musselwhite also reported that the company had accelerated plans to replace the temporary turbines with permanent, quieter equipment.

The NAACP has filed a separate Clean Air Act case over the turbines. State and local officials maintain that the company has breached no state or local laws.

People living within the proposed class area could qualify, including renters, according to Wiygul. A court conference on class certification is scheduled, but the judge has yet to determine the proposed class boundaries.