The SpaceXAI data center expansion in Southaven is now reaching people who don’t own their homes. Southaven renters near SpaceXAI‘s planned new building in the Colonial Hills area say landlords are telling them to move out because the houses they live in are being sold, WREG reported Thursday, Oct. 1.
The development follows weeks of attention on buyout offers to homeowners near the company’s operations at the Mississippi-Tennessee state line.
A 60-Day Notice for One Southaven Renter
Danielle Dillard, who has rented her home since July 2024, told WREG she got notice Monday that the property is being sold and that she has until Nov. 30 to move, about 60 days.
“My property is being sold because of the xAI building that’s being built less than a mile from my home,” Dillard told the station.
She said she has struggled to find an affordable rental that fits her family and that the holidays will look very different this year as she plans the move. “I’m just kind of standing on my faith right now,” she said.
It is not clear how many other renters have received similar notices or who is buying the properties.
Where the SpaceXAI Expansion Is Happening
The new data center building is going up near Tulane Road and Stanton Road in Southaven.
It sits next to the company’s existing operation on Stateline Road.
Residents of the nearby Colonial Hills neighborhood are being asked to vacate rental homes or are getting buyout offers for homes they own, according to WREG.
Buyout Offers and the Noise Lawsuit
Late last month, reports surfaced that MZX Tech LLC, a SpaceXAI subsidiary, was offering to buy homes inside a defined “class area” tied to a proposed class-action lawsuit over noise from the company’s nearby power plant. Homeowners who sell would agree to remove themselves from any future class-action case or settlement.
Southaven city leaders have said the noise has not violated the city’s noise ordinance, but residents have called it a real problem. On Sept. 29, The Daily Memphian reported that some homeowners near the plant had not yet received offers despite the earlier reports.
Renters are in a different spot than homeowners. A buyout offer goes to the property owner, so a tenant can end up with a move-out notice instead of a check.
What Southaven Renters Should Know
Mississippi law generally lets a landlord end a month-to-month lease with at least 30 days’ written notice, but a written lease with a set end date usually controls. Tenants who get a notice can:
Read their lease to see whether it has a fixed term or a clause about a sale of the property.
Get any move-out date and deposit-refund terms in writing.
Contact North Mississippi Rural Legal Services or Mississippi Center for Legal Services for free legal help if they qualify.
DeSoto County News will keep following the Southaven renters SpaceXAI situation and the data center expansion.
