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Elon Musk's xAI, SpaceX face class action lawsuit. Elon Musk's companies, xAI and SpaceX, are facing a proposed class-action lawsuit filed by residents in Mississippi who allege that a massive power plant supporting nearby artificial intelligence data centers has created unbearable levels of noise, disrupted their daily lives, and reduced the value of their properties. The case marks another legal challenge tied to the rapid expansion of AI infrastructure and its impact on surrounding communities. The lawsuit was filed in federal court in Oxford, Mississippi, by three residents seeking to represent a class of more than 10,000 people living near the facility. The complaint names xAI, SpaceX, and xAI subsidiary MZX Tech as defendants, alleging that the companies negligently failed to prevent excessive noise generated by the gas-powered turbines that supply electricity to the data centers. Elon Musk himself was not named as a defendant. According to the plaintiffs, the turbines produce constant and intrusive sounds that can be heard day and night. The lawsuit describes the noise as "omnipresent and inescapable," arguing that residents have suffered emotional distress, sleep disturbances, and a loss of enjoyment of their homes. They also claim the continuous noise has negatively affected local property values and transformed peaceful neighborhoods into areas affected by industrial activity. The power facility was developed to support xAI's growing data center operations in Southaven, Mississippi. The project is part of a broader effort to build the large-scale computing infrastructure necessary to power advanced AI systems. As demand for artificial intelligence increases, technology companies are constructing increasingly powerful data centers that require enormous amounts of electricity and cooling resources. The lawsuit argues that the rapid growth of AI infrastructure has created new environmental and quality-of-life concerns for nearby communities. The plaintiffs claim the companies placed the demands of AI development ahead of the rights of local residents by operating equipment that allegedly generates excessive noise around the clock. They accuse the defendants of creating a public nuisance and acting negligently by failing to adequately control the disturbances. The residents are seeking compensation for emotional distress, reduced property values, and other alleged damages. They are also requesting the disgorgement of unspecified profits connected to the operation, arguing that the companies should not financially benefit from activities that allegedly harmed surrounding communities. xAI and SpaceX did not immediately respond to requests for comment regarding the lawsuit. The case comes amid broader legal scrutiny of the companies' AI-related facilities. Earlier in 2026, the NAACP filed a separate lawsuit accusing xAI of violating environmental laws in connection with the same Mississippi facility and its operations. The U.S. Department of Justice later indicated it may intervene in that dispute due to broader legal and policy questions involving AI infrastructure. The lawsuit highlights an emerging legal conflict between the technology industry's race to expand artificial intelligence capabilities and the rights of communities located near large-scale data centers. As AI companies build larger facilities requiring significant power generation, courts may increasingly be asked to determine how much disruption nearby residents must tolerate. Public nuisance claims have historically been used to address activities that interfere with the public's health, safety, comfort, or use of property. In this case, the plaintiffs will need to prove that the alleged noise is unreasonable and that the companies' operations directly caused the harms they describe. The outcome of the case could influence how technology companies design and operate future AI facilities. A ruling favoring residents may encourage stricter noise controls, additional environmental reviews, or greater community engagement before new AI data centers are developed. Although the lawsuit is still in its early stages and no court has determined whether xAI or SpaceX violated the law, the dispute represents a significant legal test over the environmental and community consequences of the expanding artificial intelligence industry. Key legal outcomes. * Mississippi residents filed a proposed class-action lawsuit against xAI, SpaceX, and MZX Tech. * The lawsuit alleges public nuisance and negligence caused by excessive noise from power turbines. * More than 10,000 residents may be included in the proposed class. * Plaintiffs seek damages for emotional distress, lower property values, and other alleged harms. * The case is in its early stages, and no court has ruled on the allegations. Why it matters. * The lawsuit is one of the first major legal challenges involving AI data center noise impacts. * It highlights the environmental and community costs of the AI expansion race. * The outcome could shape future regulations for large-scale AI infrastructure. * The case tests the limits of nuisance law in addressing modern technology projects. * It may influence how technology companies balance innovation with local community concerns. Janice Thompson Janice Thompson enjoys writing about business, constitutional legal matters and the rule of law.

SpaceX has secured a $4.16 billion contract from the U.S. Space Force to build a satellite network for detecting and tracking airborne threats from orbit. The award gives Elon Musk's company a central role in the Space Based Advanced Moving Target Indicator programme, designed to provide persistent tracking of aircraft and missiles worldwide. The contract follows a separate $2.29 billion Space Force award earlier this week for military satellite communications, bringing SpaceX's newly announced government contracts to approximately $6.45 billion. The deals underscore SpaceX's transformation from commercial launch provider to major defence contractor as the company pursues potential growth beyond its launch and Starlink businesses. The SB-AMTI system is expected to deploy an initial satellite constellation by 2028, providing military commanders enhanced battlespace awareness in contested environments.

Anthropic has agreed to pay SpaceX nearly $45 billion over three years for computing resources to support its Claude AI software, according to SpaceX's initial public offering paperwork. The deal involves monthly payments of $1.25 billion through May 2029, with reduced fees during the initial ramp-up period. The arrangement grants Anthropic access to over 300 megawatts of computing capacity from SpaceX's Colossus 1 data centre in Memphis, Tennessee, which houses more than 220,000 Nvidia GPUs. Anthropic has expanded the agreement to include Colossus 2, with plans to scale up Nvidia GB200 capacity throughout June. The partnership represents a significant boost for SpaceX, whose annual revenue currently sits around $18 billion. SpaceX indicated it expects to enter additional similar services contracts leveraging unused compute capacity.