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xAI Buys Out Homes to Avoid Lawsuit Over Data Center Noise

12:19 PM ETConfirmed

Technology Desk

In Short: Growing opposition to AI data centers is putting pressure on politicians, especially in the lead-up to the midterm elections.

The realtor reportedly told one resident that xAI plans to purchase 418 homes, with 18 homeowners already agreeing to sell. The company has been ramping up its data center buildout, constructing two 'Colossus' facilities in Memphis and bringing its 'Macrohardrr' data center and power plant to Southaven.

Growing opposition to AI data centers is putting pressure on politicians, especially in the lead-up to the midterm elections. Last week, the Memphis City Council voted down a one-year moratorium on AI data center development, opting instead for a 135-day pause on construction.

Residents who rent homes in the area are being forced out with 60 days’ notice after their landlords agreed to sell. This move by xAI highlights the growing tension between tech companies and local communities over the impact of large-scale data center developments.

In contrast, Saudi Arabia’s real estate market is experiencing a different trend. According to Arabnews, real estate prices in the country rose 1.2 percent in the third quarter from a year earlier, driven by gains in residential land and apartment prices.

The increase in Saudi real estate prices comes as part of the country’s Vision 2030 economic diversification program, which aims to promote homeownership and expand housing supply.

Despite the rise in real estate prices, affordability and financing conditions remain key factors shaping demand. The homeownership rate in Saudi Arabia reached 66.24 percent at the end of 2025, according to Minister of Municipalities and Housing Majed Al-Hogail.

In the U.S., the situation with adjustable-rate mortgages (ARMs) is also relevant. Fortune reported that homeowners with some tolerance for uncertainty might find an ARM worth considering as a way to get a low introductory rate before adjustments kick in.

However, the complexity involved in setting up advanced smart home systems remains a barrier for many consumers. Technewsworld noted that few consumers take advantage of these advanced 'smart home 2.0' usage models due to the complexity.

The wired video doorbell, priced at $249.95, allows homeowners to view and monitor visitors and receive notifications when someone approaches their property, highlighting the ongoing evolution of smart home technology.

What this adds

Background

What's confirmed

• The realtor reportedly told one resident that xAI plans to purchase 418 homes, with 18 homeowners already agreeing to sell. The company has been ramping up its data center buildout, constructing two 'Colossus' facilities in Memphis and bringing its 'Macrohardrr' data center and power plant to Southaven.
• Growing opposition to AI data centers is putting pressure on politicians, especially in the lead-up to the midterm elections. Last week, the Memphis City Council voted down a one-year moratorium on AI data center development, opting instead for a 135-day pause on construction.
• Residents who rent homes in the area are being forced out with 60 days’ notice after their landlords agreed to sell. This move by xAI highlights the growing tension between tech companies and local communities over the impact of large-scale data center developments.
• In contrast, Saudi Arabia’s real estate market is experiencing a different trend. According to Arabnews, real estate prices in the country rose 1.2 percent in the third quarter from a year earlier, driven by gains in residential land and apartment prices.
• The increase in Saudi real estate prices comes as part of the country’s Vision 2030 economic diversification program, which aims to promote homeownership and expand housing supply.
• Despite the rise in real estate prices, affordability and financing conditions remain key factors shaping demand. The homeownership rate in Saudi Arabia reached 66.24 percent at the end of 2025, according to Minister of Municipalities and Housing Majed Al-Hogail.
• In the U.S., the situation with adjustable-rate mortgages (ARMs) is also relevant. Fortune reported that homeowners with some tolerance for uncertainty might find an ARM worth considering as a way to get a low introductory rate before adjustments kick in.
• However, the complexity involved in setting up advanced smart home systems remains a barrier for many consumers. Technewsworld noted that few consumers take advantage of these advanced 'smart home 2.0' usage models due to the complexity.
• The wired video doorbell, priced at $249.95, allows homeowners to view and monitor visitors and receive notifications when someone approaches their property, highlighting the ongoing evolution of smart home technology.

What's still developing

• A subsidiary of Elon Musk’s xAI is offering to buy up homes in a Mississippi neighborhood, as long as residents don’t join a lawsuit targeting the company’s nearby data center and power plant.
• After Mississippi’s governor touted the company’s plan to invest more than $20 billion in the area earlier this year, SpaceXAI recently reported it’s facing up to $6.1 million in potential civil penalties for environmental law violations, along with more than $220 million in claims of unpaid bills for work performed at the Memphis and Southaven sites.
• “Property prices and percentage changes vary by location, so national figures do not reflect every neighbourhood,” said Amer Al-Zurayj, sales director at Holo.
• Although issues such as compatibility, cost, and security persist, Matter, the new interoperability standard from the Connected Standards Alliance (CSA), promises to resolve many of these as it rolls out.
• This point is especially true for homeowners who desire more sophisticated usage model capabilities, such as creating scenes with various smart home devices that perform multiple tasks simultaneously, such as opening the garage, turning on the lights and music, and disarming a home security system.
• Keep reading and we’ll explain how ARMs work, consider when an ARM is worth considering as an alternative to a fixed-rate mortgage, and consider average ARM rates according to Mortgage Research Center data.
• A large chunk of Millennial and Gen Z homeowners can’t afford to upgrade and are continuing on in their starter homes To refinance from an ARM to a fixed-rate mortgage, the process is more or less the same as refinancing from one fixed-rate loan to another.
• Fortune reviewed the most recent MRC data available as of Sept.
• The sensor provides data on conditions in individual rooms so users can identify temperature differences and make adjustments.

Sources

• The Vergelink
• Arabnewslink
• Technewsworldlink
• Fortunelink
• Dataconomylink
• WarpBeat — background on Ukraine Strikes St. Petersburg With Drones, Damaging Oil Terminal and Data Center link
• WarpBeat — background on Massive Ukrainian drone attack hit oil facility, bridge, and data center in St. Petersburg link
• Forbes Breaking News — video link