Preliminary Injunction
Preliminary Injunction
Plaintiffs,
v. No. 3:26-cv-00074-MPM-JMV
Defendants.
TABLE OF CONTENTS
INTRODUCTION.....................................................................................................1
I. BACKGROUND .......................................................................................................2
A. The Clean Air Act requires operators to prevent harmful air pollution. .........2
B. Defendants constructed the Colossus Gas Plant without any permits and
operated it without necessary pollution controls. ...........................................4
C. The Colossus Gas Plant poses dangers to public health and welfare. ............6
B. The Court has statutory jurisdiction over this Clean Air Act citizen suit .....12
built their Colossus Gas Plant to power xAI’s nearby data center. Following the “move fast and
break things” business model, the companies built their network of massive gas-fired turbines
without any air pollution permits or the necessary pollution controls. Defendants certainly built
their Plant fast, but in doing so they betrayed the community—and broke the law.
New sources of air pollution pose new risks to the health and welfare of those
communities most likely to bear the brunt of environmental and climate decisions, frontline and
fenceline neighborhoods. That’s why the Clean Air Act requires operators to get permits that set
pollution limits before they build their facility, and then to operate it in accordance with those
permit limits. Without controls, the Colossus Gas Plant’s turbines can emit ten times the amount
of nitrogen oxides pollution they should under the Act, contributing to increasing risks of heart
disease, lung disease, and premature death in the surrounding neighborhoods where Black and
other frontline communities live, including members of Plaintiffs NAACP and NAACP MS.
The Clean Air Act’s permitting system is not “red tape” that operators can cut to save
time and money; it is a safety belt that protects the lives and livelihoods of surrounding
communities. But, disregarding neighbors’ health and the Act’s plain requirements, Defendants
continue to expand the Gas Plant’s capacity without air permits, pollution controls, emissions
monitoring, or community involvement, trading public health for speed in their race to market.
Only an injunction prohibiting operations can protect the community and prevent illegal
harms as the Clean Air Act demands. The law requires permits and controls; Defendants don’t
have them. The Gas Plant causes imminent and irreparable harm each day it operates, disrupting
the lives of community members and exposing them to illegal pollution. This Court should
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enjoin the Colossus Gas Plant’s operation until Defendants obtain the permits and implement the
I. BACKGROUND
A. The Clean Air Act requires operators to prevent harmful air pollution.
More than 50 years ago, Congress enacted the Clean Air Act “to protect and enhance the
quality of the Nation’s air resources so as to promote the public health and welfare” of
communities like those living near the Colossus Gas Plant. 42 U.S.C. § 7401(b)(1). In it,
Congress directed EPA to establish air quality standards, 1 which State permitting authorities
would work to attain and maintain as they managed regional development. Setting the paradigm
for cooperative federalism, the Clean Air Act then allowed States to develop their own
§ 7407(a). State Implementation Plans must be at least as stringent as the federal template, and
once approved by EPA, they become federally enforceable under the Clean Air Act. 42 U.S.C.
§§ 7413, 7604. EPA has approved the Mississippi State Implementation Plan (SIP). 40 C.F.R.
§ 52.1270(c)–Table 1.
Congress in its statute and Mississippi in its SIP recognized that all new stationary
sources of air pollution pose new and additional risks to the health and welfare of downwind
communities. As such, before constructing a new source of air pollution, owners and operators
must apply for permits that establish pollution limits, and then they must install and operate the
necessary pollution controls to ensure the source keeps its pollution below those limits. There are
1
Called the National Ambient Air Quality Standards (or NAAQS). 42 U.S.C. § 7409(b)(1).
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pollutants—including nitrogen oxides (NOx) and fine particulate matter (PM2.5)—must apply for
and obtain permits prior to construction and operation unless specific, enumerated exemptions
apply. 11 Pt. 2 Ch. 2 Miss. Code R. 2.1 D (2013). “Stationary source” is defined as “any
building, structure, facility, or installation which emits or may emit regulated air pollutant(s).” 11
Pt. 2 Ch. 2 Miss. Code R. 2.1 C (28) (2013). Permits to construct include emissions limitations
based on Clean Air Act requirements. 11 Pt. 2 Ch. 2 Miss. Code R. 2.2 B (10) (2013). Any later
issuance of a permit from the Mississippi Permit Board “does not release the permittee from
liability for constructing or operating air emissions equipment” without first obtaining a permit
2. New Source Review Permits for Major Sources of Criteria Pollutants. The Clean
Air Act’s New Source Review program requires new “major” sources of criteria air pollutants to
obtain permits and comply with stringent emission limits that reduce pollution in order to
“protect public health and welfare from any actual or potential adverse effect” from that air
pollution. 42 U.S.C. § 7470(1). These strict limits are referred to as “best available control
technology” or “BACT,” and are defined as “an emission limitation” that restricts pollutant
discharges “on a continuous basis.” Id. §§ 7475(a)(4), 7479(3), 7602(k). Set case-by-case, BACT
must achieve the maximum pollution reduction possible considering “energy, environmental and
economic impacts and other costs.” Id. § 7479(3). The BACT requirement reflects Congress’
design to “prevent” the “deterioration” of air quality, 42 U.S.C. §§ 7470–7492, so BACT limits
must be set by permits before the new source is constructed, id. § 7475(a)(1), and the source
must comply with the limitation during its operations thereafter. Id. § 7475(a)(4). No such permit
can be issued for a new major source unless the owner or operator of the facility demonstrates
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through air modeling that the facility will not cause or contribute to air pollution in excess of
regional air quality standards, id. §7475(a)(3). Operators must establish air quality monitoring to
track the facility’s air pollution impacts. Id. § 7475(a)(7); see also 40 C.F.R. §§ 51.166(k), (m).
B. Defendants constructed the Colossus Gas Plant without any permits and
operate it without necessary pollution controls.
In July of 2025, MZX Tech, a subsidiary of xAI, acquired property at 2875 Stanton Road
South in Southaven, DeSoto County, Mississippi. 2 On July 25, the Vice President of Operations
for xAI informed the Mississippi Department of Environmental Quality (MDEQ) of Defendants’
“plans to build energy resources at our property in DeSoto County,” beginning with unpermitted,
“temporary” gas-fired turbines. 3 The turbines would provide fast power to xAI’s Colossus 2 data
center, xAI’s second data center in Shelby County, Tennessee, a mile away.
Four days later, on July 29, MDEQ claimed in a two-paragraph letter that xAI’s turbines
were “exempt” from permitting requirements because they were “[1] ‘mobile’ as each will
remain affixed to a portable unit (i.e., a flatbed trailer) and [2] ‘temporary’ as it is intended for
each to remain on-site (2875 Stanton Road South; Southaven, MS) for less than twelve (12)
months.” 4 In the meantime, MZX Tech stated that it would apply for air permits for a different
2
See Public Records Collection, Ex. A. (Al-Zhyri Decl.) attaching Ex. A-3 (Deed).
3
Ex. A-4 (July 25, 2025 xAI Update).
4
Ex. A-5 (MDEQ’s Determination Letter).
5
On August 22, 2025, MZX submitted a permit application proposing a different turbine
fleet (and pollution controls) for the site, then revised its application on January 14, 2026.
MDEQ issued MZX a permit on March 11, 2026. See Ex. A-18 (Amended PSD Air Permit
Application) and Ex. A-25 (PSD Air Permit), respectively.
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each the size of a single-family home at the Southaven property. 6 By the end of August, 18 gas-
fired turbines had been built on site. By November, all 18 were powering xAI’s data center. 7
And by December, Defendants had installed 9 more turbines, bringing the Plant’s total to 27. 8
Early community opposition to xAI’s developments in the Memphis Area had publicly
highlighted that residents and surrounding NAACP community members were concerned with
the company’s apparent circumvention of the law and disregard for public health. See, e.g., Ex.
G (Tipton Decl.) at ¶¶ 9, 10. Defendants met the same local opposition to their installation of
gas-burning turbines without first inviting public participation in Southaven. On February 13,
2026, Plaintiffs issued a Notice of Intent to Sue, detailing Defendants’ failures to follow Clean
Air Act requirements, and underscoring the burdens those violations foist on frontline
communities and neighbors that may be particularly vulnerable to risks posed by increased air
pollution—like NAACP and NAACP MS’s members living in the surrounding area. 9
Aerial photographs from March 3 confirmed that 27 turbines were still on site at
Defendants’ Colossus Gas Plant in Southaven. 10 These 27 turbines have a combined generating
permit to build and operate a different fleet of gas turbines—complete with (at least some)
6
Ex-A-11 (Nov. 25, 2025 Trinity Update).
7
Ex. A-10 (Nov. 5, 2025 Trinity Update) at 2.
8
Ex. A-13 (Dec. 11, 2025 Trinity Update).
9
See Ex. A-21 (Notice of Intent).
10
Ex. A-23 (March 3, 2026 Satellite Photo).
11
Ex. A-13 (Dec. 11, 2025 Trinity Update); Eng. Analysis, Ex. H (Laufenberg Decl.) ¶ 7.
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By April 14, 2026, over two months after Defendants received the NOI, aerial
photographs revealed the construction of six additional turbines, all added after March 3. 13
permits prior to construction, best available control technology to limit pollution during
operations, and emissions monitoring for pollution tracking and transparency. Defendants have
not obtained a single air permit for these turbines or otherwise complied with the Clean Air Act
C. The Colossus Gas Plant poses dangers to public health and welfare.
impact human health, including nitrogen oxides (NOx), fine particulate matter (PM2.5), and
carbon monoxide (CO). These pollutants have been regulated as dangerous for generations, and
Black and frontline communities and vulnerable populations—like Plaintiffs’ members in the
area—face greater risks and bear a greater health burden from such pollution. 14
Nitrogen dioxide (NO2), a significant component of NOx, can irritate airways and lead to
like cardiovascular disease, respiratory disease, or even premature mortality. 15 NOx also reacts
with other chemicals in the air to form both PM2.5 and ozone, and it is a primary cause of smog.
Among other harmful health effects, ozone irritates people’s lungs and causes asthma attacks. 16
12
See Ex. A-25 (PSD Air Permit).
13
See Ex. A-29 (April 14, 2026 Satellite Photo); Ex. H (Laufenberg Decl.) ¶ 25.
14
See Public Health Review, Ex. I (Suh. Decl.) ¶¶ 61–68.
15
See id. ¶ 34-44.
16
See, e.g., Health Effects of Ozone Pollution, ENV’T PROT. AGENCY, published on
[Link] [[Link] (last updated May 23, 2025).
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Like NO2, PM2.5 exposure increases the risks of lung disease, heart disease, and even
“there is no safe level below which PM2.5 is not harmful.” United States v. Ameren Missouri, 421
F. Supp. 3d 729, 773 (E.D. Mo. 2019), aff’d in part, rev’d in part on different grounds and
remanded, 9 F.4th 989 (8th Cir. 2021). Indeed, “any incremental increase in PM2.5 exposure
produces an incremental increased risk of mortality and other health effects in the population
human health by reducing the amount of oxygen transported in the bloodstream to critical
When it consisted of 27 turbines, the Colossus Gas Plant had the potential to emit
1,732.71 tons of NOx per year, 588.26 tons of CO, and 181.62 tons of PM2.5, among other
pollutants. 19 Even then, it ranked as far-and-away the largest industrial source of NOx in the 11-
county Memphis Metropolitan Statistical Area. 20 Now with 33 turbines, the Gas Plant has the
potential to emit a staggering 2,507.96 tons of NOx per year, 837.08 tons of CO, and 236.36 tons
17
See Ex. I (Suh Decl.) ¶¶ 21–32; Health and Env't Effects of Particulate Matter (PM),
ENV’T PROT. AGENCY, [[Link] (last updated May 23, 2025).
18
See Basic Information about Carbon Monoxide (CO) Outdoor Air Pollution, ENV’T PRO.
AGENCY , [[Link] (last updated June 17, 2025).
19
Ex. H (Laufenberg Decl.) ¶¶ 11, 23.
20
For comparison, the next largest industrial NOx source emitted 743 tons in the most
recent reporting year. Cf. 2020 National Emissions Inventory (NEI) Data, ENV’T PROT. AGENCY
(2020), [[Link] Ex. H (Laufenberg Decl.) ¶ 23.
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of PM2.5. 21 Of the 33 turbines on site, only the 14 smallest are equipped with appropriate controls
Emissions from the Colossus Gas Plant contribute to already high levels of air pollution
in DeSoto County and neighboring Shelby County, Tennessee, both of which received an “F”
from the American Lung Association for ozone pollution in 2026. 23 And as ozone formation
increases during the upcoming summer months, Defendants’ operations of the unpermitted Plant
To obtain a preliminary injunction, a party must show: (1) a likelihood of success on the
merits; (2) a likelihood of irreparable harm in the absence of preliminary relief; (3) that the
balance of equities tips in their favor; and (4) that an injunction is in the public interest. Winter v.
Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008); see also City of El Cenzio, Tex. v. Texas, 890
F.3d 164, 176 (5th Cir. 2018) (setting forth elements). When an injunction is sought pursuant to a
federal statute, a court’s exercise of its equitable discretion is “conditioned by the necessities of
the public interest which Congress has sought to protect.” United States v. City of Painesville,
Ohio, 644 F.2d 1186, 1193 (6th Cir. 1981). In enacting the Clean Air Act, Congress determined
that “the public interest required that substantial measures be taken to combat the deleterious
21
Ex. H (Laufenberg Decl.) ¶¶ 11, 31.
22
Id. ¶¶ 15–16, 20.
23
See “State of the Air: 2026 Report,” AM. LUNG ASS’N (2026) [[Link]
VEAX] at 108 (Grade for Desoto County, Miss.) at 146 (Grade for Shelby County, Tenn.).
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III. ARGUMENT
Defendants’ violations of the Clean Air Act warrant a preliminary injunction to protect
the public health and welfare—to give NAACP and NAACP MS members in Southaven and
other downwind communities in the Memphis area the benefit of the statutory protections
Congress enshrined in the Clean Air Act half a century ago. Plaintiffs have standing to bring this
lawsuit, this Court has jurisdiction over this case under the statute, and this Court should enter an
An organization has associational standing to file suit where (1) at least one member
would otherwise have standing, (2) the interests at stake in the litigation are germane to the
organizations’ purposes, and (3) neither the claims asserted nor the relief requested requires an
individual member’s participation in the suit. See Texans United for a Safe Econ. Educ. Fund v.
Crown Cent. Petroleum Corp., 207 F.3d 789, 792 (5th Cir. 2000). An organization’s member has
standing where they face (1) an actual or imminent injury in fact that (2) can be traced to the
defendant’s conduct and (3) is likely to be redressed by a favorable decision. Lujan v. Defs. of
Wildlife, 504 U.S. 555, 560-61 (1992). Here, at least one member of each NAACP and the
NAACP MS suffers an injury traceable to the unlawful construction and operation of the
turbines, injuries that would be redressed by favorable relief. Cf. Lujan 504 U.S. at 560-61.
The existing Colossus Gas Plant poses actual and imminent harms to Plaintiffs’ members
in the surrounding area, some of whom live less than a mile from the Gas Plant’s unpermitted
smokestacks. Plaintiffs’ members Stephanie Norvell, Robert Tipton, Khadijah Sheard, Tracy
Thornton, and Tiffany and Adrian Millsap live, work, garden, attend church, volunteer—
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breathe—in neighborhoods adjacent to Defendants’ Gas Plant. 24 The Gas Plant’s operations
have upended their lives with new fears, lost sleep, and changed routines. And MZX Tech’s own
air quality studies underscore the threats these turbines pose to downwind communities. MZX’s
Under that threatening “red blob” of dangerous air quality impacts MZX projected for its
future facility with a fraction of the pollution lie the homes and churches of Plaintiffs’ members,
including those of the standing witnesses in this case. So, members of Plaintiffs’ organizations
“[sit] squarely in the discharge zone of [the] polluting facility” currently operating at the same
address. Friends of the Earth v. Gaston Copper Recycling Corp., 204 F.3d 149, 162 (4th Cir.
2000); see also Texans United, 207 F.3d at 793 (finding traceability where unlawful emissions
24
See associated declarations, attached at Exhibits B–G.
25
Ex. A-15 (Trinity Modeling Report) at 28.
26
Id. at 69.
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reach plaintiff members’ residences); Utah Physicians for a Healthy Env’t v. Diesel Power Gear,
LLC, 21 F.4th 1229, 1245 (10th Cir. 2021) (holding a person injured by air pollution has
standing under the Clean Air Act “to seek a remedy from a defendant that emits the injurious
pollutant in the geographic vicinity of where the person is injured” and collecting cases).
Of course, the pollution emitted by the existing Colossus Gas Plant need not exceed the
“significant impact levels” used in certain permitting steps to cause actual and imminent harms.
At any level, increased exposure to air pollution like the pollution emitted by the Gas Plant
increases risks of negative health effects, especially for children, older adults, and people with
pre-existing cardiovascular and respiratory disease. See Ex. I (Suh Decl.) ¶¶ 16-20; 61–68. Even
short-term increases in exposure are associated with increased rates of hospital admissions for
heart failure, stroke, arrhythmia, and respiratory disease, and even premature death. Id. ¶¶ 24, 43,
55-56. Moreover, Plaintiffs’ members’ reasonable fear of exposure to that pollution limits their
ability to enjoy their homes and communities the way they otherwise would—a “measurable
intrusion” into their daily lives. W. Va. Rivers Coal., Inc. v. Chemours Co., 793 F. Supp. 3d 790,
806 (S.D. W. Va. 2025); see also, S. Tex. Env’t. Just. Network v. Tex. Comm’n on Env’t. Quality,
165 F.4th 356, 366 (5th Cir. 2026) (injury in fact where individuals “allege that breathing
polluted air will harm their health” and interfere with aesthetic enjoyment of places they visit). 27
These harms would be redressed by a decision of the Court enjoining illegal operations of
the Gas Plant and requiring compliance with the Clean Air Act’s permitting and control
requirements going forward. Friends of the Earth, Inc. v. Laidlaw Env’t Servs. (TOC), Inc., 528
27
See, e.g., Ex. E (Sheard Decl.) ¶¶ 15–17, 22–24; Ex. B (A. Millsap Decl.) ¶¶ 17, 18; Ex.
G (Tipton Decl.) ¶¶ 12, 15, 16; Ex. F (T. Thornton Decl.) ¶¶ 14, 15, 17.
11
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U.S. 167, 184–86 (2000) (recognizing injunctive relief as a form of redress for a citizen’s injury
Finally, the members’ interests are germane to the NAACP’s and NAACP MS’s
missions, which include advocating for clean air, healthful communities, and environmental
justice in Mississippi. 29 Neither the claims asserted nor the relief requested require participation
by individual members. Laidlaw, 528 U.S. at 181. Therefore, Plaintiffs have standing.
B. The Court has statutory jurisdiction over this Clean Air Act citizen suit.
The Clean Air Act’s citizen suit provision authorizes citizens to sue for violations of “an
emission standard or limitation” under the Act. 42 U.S.C. § 7604(a)(1). Plaintiffs must provide
Defendants, and others, with at least 60 days of notice before they bring certain types of claims.
Id. § 7604(a)(1), (b)(1)(A). Here, Plaintiffs provided notice on February 13, 2026, and filed suit
60 days later, on April 14, 2026. Thus, this Court has jurisdiction.
MDEQ’s brief 2025 letter to xAI agreeing the Colossus Gas Plant was exempt from
permitting does not bar this suit. Citizen suits may still proceed after state agencies determine
permits are not required, Ass’n to Protect Hammersley, Eld, & Totten Inlets v. Taylor Res., Inc.,
299 F.3d 1007, 1011–12 (9th Cir. 2002), or while agencies pursue parallel investigations. Abbott
v. BP Expl. & Prod. Inc., 781 F. Supp. 2d 453, 469 (S.D. Tex. 2011). Just as state applicability
determinations do not bar federal enforcement under the Clean Air Act, United States v. S. Ind.
Gas & Elec. Co., No. IP99-1692-CMF, 2002 WL 1760699, at *4 (S.D. Ind. July 26, 2002), they
do not shield operators from citizen enforcement. If they did, it would frustrate the very purpose
of the citizen suit provision. Ass’n to Protect Hammersley, 299 F.3d at 1011–12.
28
Cf., e.g., Ex. B (A. Millsap Decl.) ¶ 24; Ex. D (Norvell Decl.) ¶ 23.
29
Ex. G (Tipton Decl.) ¶¶ 3, 17; Ex. E (Sheard Decl.) ¶¶ 4, 13; Ex. C (T. Millsap Decl.) ¶ 5;
Ex. F (Thornton Decl.) ¶ 11.
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Defendants unlawfully operate an unpermitted power plant, one of the largest sources of
air pollution for miles. The law and equities weigh in favor of preliminary injunctive relief to
prevent further harm to the surrounding community as the Clean Air Act requires.
The Clean Air Act requires operators to obtain permits and control new sources of air
pollution. Defendants didn’t—and they continue to expand their unpermitted facility even now.
With but a few exceptions not relevant here, Mississippi’s regulations require: [1] owners
or operators of [2] “any new stationary source” [3] of criteria pollutants to [4] obtain a permit
“before beginning construction.” 11 Pt. 2 Ch. 2 Miss. Code R. 2.1 D (2013). This requirement
applies regardless of whether the facility is a “major” or “minor” source of pollutants. Id.
Moreover, even after a stationary source has obtained a construction permit, an owner or
operator “cannot begin operation” until they certify construction was completed in accordance
with the permit. 11 Pt. 2 Ch. 2 Miss. Code R. 2.5 D (1), (3) (2013). Plaintiffs likely will succeed
MZX Tech owns the property on which the Colossus Gas Plant was built—its name is on
the deed. 30 And MZX Tech represented to the MDEQ that it was responsible for the installation
and operation of the turbines in question on the site. 31 Meanwhile, xAI officers have coordinated
30
See Ex. A-3 (Deed).
31
See, e.g., Ex. A-18 (Amended PSD Air Permit Application) at 4, 10.
13
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with MDEQ and present themselves as responsible for the permitting and operation of the Gas
The Colossus Gas Plant is also a “stationary source.” Under the SIP, a “stationary source”
is “any building, structure, facility, or installation which emits or may emit regulated air
pollutant(s).” 11 Pt. 2 Ch. 2 Miss. Code R. 2.1 C (28) (2013). The turbines at the Gas Plant are
pollution while operating. And the emissions stacks Defendants built to vent the pollution stand
Next, the Colossus Gas Plant emits air pollution. The Mississippi SIP defines “[r]egulated
air pollutant[s]” as, among other things, any pollutant regulated as part of the New Source
Review program. 11 Pt. 2 Ch. 2 Miss. Code R. 2.1 C (21). The Clean Air Act defines New
Source Review pollutants as any pollutant subject to the NAAQS. 40 C.F.R. § 52.21(b)(50). The
Act establishes NAAQS for NOx, PM2.5, and ozone, among others. 40 C.F.R. §§ 50 et seq. The
Colossus Gas Plant plainly emits regulated air pollution. Ex. H (Laufenberg Decl.) ¶¶ 11, 23, 31.
Many of the specification sheets for these turbines describe their emission of NOx. See id. at Att.
2, 3. At xAI’s sister facility in Shelby County, Tennessee, the company has an operating permit
for a fleet of 15 Solar SMT-130 gas turbines—the very same type as some of those installed in
32
See Ex. A-5 (MDEQ’s Determination Letter) (discussion of air pollution permitting
directed to the “Vice President of Operations” at xAI); Ex. A-7 (Original PSD Air Permit
Application) at 9, 15 (listing Dan Rowland at xAI as the Responsible Official for the facility and
the Duly Authorized Representative for air permit matters); cf United States v. EES Coke Battery,
No. 22-11191 2026 WL 498640 at *7 (E.D. Mich. Feb 17, 2026) (parent company is directly
liable where it exhibits control over a facility’s “environmental decision-making”).
33
See Ex. A-2 (Shelby County’s Colossus 1 Permit).
14
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Finally, MZX Tech began construction of the Colossus Gas Plant without a permit. It also
Accord 11 Pt. 2 Ch. 2 Miss. Code R. 2.5 D (1), (4) (2013). To this day, Defendants have neither a
construction permit nor enforceable emissions limitations constraining the Gas Plant’s pollution.
“[A] showing of a substantial likelihood of success on the merits[] does not require that
the movant prove his case. . . . Even some likelihood of success can be enough to support the
issuance of a preliminary injunction.” Ass’n of Taxicab Operators., USA v. City of Dallas, 760 F.
Supp. 2d 693, 696 (N.D. Tex. 2010) (citing, inter alia, Productos Carnic, S.A. v. Cent. Am. Beef
& Seafood Trading Co., 621 F.2d 683, 686 (5th Cir. 1980) (“[w]here the other factors are strong,
a showing of some likelihood of success on the merits will justify temporary injunctive relief.”)).
Here, the law requires a permit, and Defendants don’t have one. It’s as simple as that.
In addition to failing to obtain the Mississippi-required preconstruction permit for all air
pollution sources, Defendants failed to obtain the specific New Source Review permit required
for its “major” source of air pollution. Pursuant to the Clean Air Act: [1] owners and operators of
[2] any “major emitting facility” must [3] obtain a Prevention of Significant Deterioration permit
(which would set BACT) [4] prior to construction. 42 U.S.C. § 7475(a); 11 Pt. 2 Ch. 5 Miss.
Code R. 5.2 (2024) (adopting PSD regulations into Mississippi SIP). As established above, MZX
Tech and xAI are the owners and operators of the Colossus Gas Plant, a stationary source which
they constructed—and now operate—without any Clean Air Act permits. Elements 1, 3, and 4
are met here again. All that remains is whether the facility is a “major emitting facility” under the
15
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The Clean Air Act defines a “major” source as one that “emits, or has the potential to
emit” more than 250 tons per year of a regulated criteria pollutant, including NOx, CO, PM2.5, or
ozone. 40 C.F.R. § 51.166(b)(1)(i)(B). Here, the 33-turbine Colossus Gas Plant has the potential
to emit over 2,500 tpy of NOx, and 837 tpy of CO—several multiples of the 250 tpy threshold.
See Ex. H (Laufenberg Decl.) ¶ 31. Because the plant is a major source of NOx, it also is
automatically a major source for ozone under the relevant regulations. 40 C.F.R. § 52.21(b)(ii)
(“[a] major source that is major for . . . NOx shall be considered major for ozone”). As a major
emitting facility, the Gas Plant was required to implement “best available control technology” to
prevent its harmful emissions prior to its construction. See 42 U.S.C. § 7475(a)(4).
The BACT requirement is clear. EPA published its guidance on another company’s
BACT analysis for similar gas turbines more than 25 years ago. 34 More recently, Shelby County
issued a permit that “require[s] BACT” for a network of 15 gas turbines at a related xAI site in
Tennessee. 35 The Colossus Gas Plant at issue here consists of at least 27 operating gas turbines—
many the same make and model as at the Tennessee site. There should be no doubt that the Gas
Plant is a major emitting facility for which Defendants also need a major source PSD permit.
These are not mere paperwork violations. PSD permits impose stringent emissions
limitations which are set (as the name implies) according to the best available control
technology. By way of example, selective catalytic reduction systems (known in the industry as
SCRs), are generally considered to set best available control technology limits for NOx pollution
34
See Letter from Genevieve Damico, ENV’T PROT. AGENCY, ENV’T PROT. AGENCY, to
Donald E. Sutton, Ill, ENV’T PROT. AGENCY (July 5, 2000) [[Link]
(Presented on EPA’s website as “Assistance in Determining BACT for Simple-Cycle Natural Gas
Turbine Peaker Project”).
35
Ex. A-2 (Shelby County’s Colossus 1 Permit).
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from gas turbines. In fact, SCRs are exactly what the permit requires for xAI’s sister facility in
Shelby County, Tennessee. 36 And as EPA reported in 2019, “commercial coal-, oil-, and natural
gas–fired SCR systems are often designed to meet control targets of over 90 percent.” 37 That
means, by skirting the Clean Air Act permitting requirements, turbines at Defendants’ Colossus
Gas Plant may be emitting ten times as much NOx as they should.
Defendants have suggested their Colossus Gas Plant is “exempt” from permit and control
requirements because the turbines are “mobile” sources and the installation is “temporary.” The
first purported exemption is inapplicable; the second does not exist. In any event, it is
Defendants’ burden to establish the benefit of any exemption. See, e.g., NLRB v. Ky. River Cmty.
Care, Inc., 532 U.S. 706, 711 (2001); FTC v. Morton Salt Co., 334 U.S. 37, 44–45 (1948).
a. The turbines of the Colossus Gas Plant are not “mobile sources.”
The manufacturer specifications for Solar’s SMT-130 turbines note that, once installed,
the unit is 14 feet tall, almost 100 feet long, and weighs more than 200,000 pounds. See Exs. H-2
& H-3 (collecting manufacturer specification sheets for Colossus Gas Plant turbines).
Defendants’ Colossus Gas Plant is a network of 33 turbines (and growing)—all at least the size
of the SMT-130s (the M35 turbine weighs in at more than 400,000 pounds). The turbines have
all been installed on concrete pads. Ex. H (Laufenberg Decl.) ¶¶ 33-34 (noting that concrete pads
are used to support more permanent structures). Nevertheless, xAI’s correspondence with
MDEQ in July 2025 suggests the Gas Plant is somehow exempt from air pollution permitting
36
See Ex. A-2 (Shelby County’s Colossus 1 Permit).
37
ENV’T PROT. AGENCY, Chapter 2 Selective Catalytic Reduction, 2-1 (John L. Sorrels et
al. eds, 2019) [[Link]
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requirements because the turbines are “mobile” sources of air pollution. 38 This argument
stretches the text of the Clean Air Act’s mobile source provisions beyond the breaking point.
To be sure, the SIP provides an exemption for “mobile” sources, a term that is not
defined by the State. See 11 Pt. 2 Ch. 2 Miss. Code R. 2.13 D (3) (2013). But EPA regulations do
define “mobile source”; it means “a motor vehicle, nonroad engine or nonroad vehicle.” 40
C.F.R. § 51.50. As the Colossus Gas Plant’s turbines are neither “self-propelled” nor “vehicle[s]”
that carry or move anything, they are not “motor vehicles” or “nonroad vehicles.” Cf. 42 U.S.C.
§§ 7550(2) (defining “motor vehicle”); 7550(11) (defining “nonroad vehicle”). The last option—
“nonroad engine”—is defined as “an internal combustion engine” that, among other things, “is
not affected by sections 111 or 202 of the Clean Air Act. Id.; see also 42 U.S.C. § 7550(10).
However, the turbines here are subject to a New Source Performance Standard (“NSPS”) under
Section 111 of the Act because they are gas turbines with a heat-input capacity greater than 10
MMBtu/hr. See Ex. H (Laufenberg Decl.) ¶¶ 6, 29; 40 C.F.R. Part 60, Subpart KKKK. As such,
Notably, the NSPS for gas turbines describes them as “stationary” because they are “not
recognizes that that such sources “may, however, be mounted on a vehicle for portability.” 91
Fed. Reg. 1910, 1914 (Jan. 15, 2026). Ultimately, there is a world of difference between the
hand-held or cart-carried generators that might be used for powering construction tools—the
38
Ex. A-4 (July 25, 2025 xAI Update); Ex. A-5 (MDEQ’s Determination Letter)
39
See also 40 C.F.R. § 1068.30 (excluding from “nonroad engine” those subject to NSPS);
NSPS Review for Stationary Combustion Turbines and Stationary Gas Turbines (Jan. 9, 2026),
91 Fed. Reg. 1910, 1926-27 (“Historically . . . EPA has not regulated combustion turbines, even
those that may be portable, as nonroad engines, but rather as stationary sources.”).
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natural reading of mobile “nonroad engines” id.—and the building-sized gas turbines Defendants
installed here, each of which can power a neighborhood, and together can power a city. The
Clean Air Act’s provisions and EPA’s regulations recognize that difference. Defendants’ attempt
to shoehorn their Colossus Gas Plant into the Clean Air Act’s regulation of mobile sources is
unavailing. Congress does not “hide elephants in mouseholes,” and though the Act left the
garage door open to mobile sources, it does not mean MZX can drive its power plant inside.
Accord Whitman v. American Trucking Ass’ns, 531 U.S. 457, 468 (2001).
The turbines at the Colossus Gas Plant are attached to natural gas supply lines, water
injection lines, and connected—through transformers and electrical lines—to the Colossus 2 data
center. See Ex. H (Laufenberg Decl.) ¶¶ 33, 35. They are permanent installations for purposes of
Even so, MDEQ agreed with xAI’s letter proposal that the Colossus Gas Plant could be
considered “exempt” from permitting requirements because the turbines were “temporary.” 40 But
neither xAI in its letter nor MDEQ in its response cite anything for the principle. Id.
Defendants’ dreamed-up exemption for “temporary” major sources does not exist in the
text of the Clean Air Act. Nor does the Act allow room to read in such a loophole. It is black-
letter law that “[t]he Clean Air Act imposes strict liability on owners and operators that violate
its provisions.” United States v. EES Coke Battery, LLC, No. 22-11191, 2026 WL 498640, at *7
(E.D. Mich. Feb. 17, 2026) (citing United States v. Anthony Dell’Aquilla Enters. & Subsidiaries,
150 F.3d 329, 332 (3d Cir. 1998)). The purported “exemption” is based on nothing more than
Defendants’ expressed intent that the turbines of the Colossus Gas Plant would be “temporary.”
40
Ex. A-4 (July 25, 2025 xAI Update); Ex. A-5 (MDEQ’s Determination Letter).
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Allowing such “exemptions” based on the unenforceable statements of developers would replace
located only temporarily at a site.” 11 Pt. 2 Ch. 2 Miss. Code R. 2.1 D (5) (2013). Far from
exempting such facilities from permit requirements, the regulations note that the State’s Permit
Board may “issue a statewide permit or a permit for operation in multiple areas” to ensure the
Defendants may also try to argue that no New Source Review permit was required
because it had not begun actual construction. Not so. Under the Clean Air Act, and as
incorporated in the Mississippi SIP, no “new major stationary source . . . shall begin actual
construction without a [PSD] permit.” 40 C.F.R. § 52.21(a)(2)(iii); 11 Pt. 2 Ch. 5 Miss. Code R.
5.2. The phrase “begin actual construction” means “initiation of physical on-site construction
These activities “include, but are not limited to, installation of building supports and foundations,
Here, Defendants have installed 33 gas turbines. They have added exhaust stacks to some
turbines. They have laid concrete slabs, erected three structures (likely switch houses used to
route electrical current) and installed seventeen transformers. Ex. H (Laufenberg Decl.) ¶ 33.
Further, Defendants have run electric lines, gas supply lines, and water injection lines to each
turbine. Id. Decommissioning this infrastructure would take significant time—and indicates the
materials, equipment, and structures are not “temporary.” Id. ¶ 35. These are “physical on-site
construction activities” on emissions units that are “of a permanent nature.” Even if Defendants
eventually swap out the first set of gas turbines for a (permitted) set later, they cannot evade the
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Clean Air Act’s public health protections in the meantime. A company with a rotating fleet of
gas turbines cannot be allowed perpetual exemptions on an installment plan. The size of
Colossus Gas Plant and the threat it poses to public health demand control measures pursuant to
Plaintiffs have suffered irreparable harm to their health and wellbeing due to pollution
from the Colossus Gas Plant—and they are certain to suffer further irreparable harms in the
absence of an injunction. Accord Winter, 555 U.S. at 22. A harm is irreparable “where there is no
adequate remedy at law[.]” Janvey v. Alguire, 647 F.3d 585, 600 (5th Cir. 2011). “[B]reathing
and smelling polluted air” constitutes an “injury-in-fact,” Texans United, 207 F.3d at 792, that
cannot be adequately addressed by legal remedies. See Sierra Club v. Franklin Cnty. Power of
Ill., LLC, 546 F.3d 918, 936 (7th Cir. 2008) (finding irreparable injury where a Clean Air Act
violation would result in “more relaxed emission standards”). And “[e]nvironmental injury,”
including damage to natural resources, “by its nature, can seldom be adequately remedied by
money damages and is often permanent or at least of long duration, i.e., irreparable.” Amoco
Prod. Co. v. Vill. of Gambell, Alaska, 480 U.S. 531, 545 (1987). In short, “irreparable harm . . .
is obvious” where “emissions of harmful pollutants damage human health and the environment.”
United States v. Gear Box Z Inc., 526 F. Supp. 3d 522, 528 (D. Ariz. 2021) (finding irreparable
harm based on health impacts of pollution from unpermitted diesel generators); see also Sierra
Club v. U.S. Dep’t of Agric., Rural Util. Serv., 841 F. Supp. 2d 349, 358–59 (D.D.C. 2012)
Members of NAACP MS, who are also members of NAACP, live, work, and recreate
near the Colossus Gas Plant and they are injured by the unlawful pollution resulting from
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Defendants’ failure to adhere to the Clean Air Act. 41 These members include Stephaine Norvell
and Tracey Thornton, who live less than one mile away from the Plant. 42 Ms. Norvell is very
worried that exposure to air pollution from the turbines while doing the things she enjoys—
tending to her garden, grilling and hosting company on her deck, going for walks in the
neighborhood—will negatively impact her health as well as the health of her husband, both of
whom have survived cancer and have heart conditions. See Ex. D (Norvell Decl.) ¶¶ 9–10, 13.
After working long shifts, Mr. Thornton prefers to spend his time at home in the garden or
relaxing in his favorite spot—his renovated garage with the door open to the fresh breeze. See
Ex. F (Thornton Decl.) ¶¶ 6–8. But he is worried the Plant’s pollution will impact his sinus
health and the health of his neighbors, and now keeps his door closed. See id. ¶¶ 14–15, 18.
Other neighbors and members of NAACP and NAACP MS who live near the Colossus
Gas Plant share these concerns. Robert Tipton, President of the DeSoto County Chapter of the
NAACP Mississippi State Conference, lives about five miles from the Gas Plant and likes to
spend most of his time outside, but now he worries the Gas Plant’s pollution will exacerbate his
sarcoidosis and threatens the health of his family, friends, and fellow NAACP branch members.
See Ex. G (Tipton Decl.) ¶¶ 6, 11, 15–16, 18. Khadijah Sheard is a registered nurse who lived
less than a mile from the facility until she moved to get away from it. See Ex. E (Sheard Decl.)
¶¶ 6, 22. Still, her concern about increased risk of respiratory disease because of the Plant’s
pollution interferes with her ability to enjoy her time visiting nearby parks, volunteering with
NAACP MS, and attending her local Southaven church. See id. ¶¶ 3, 16–18. And Adrian and
41
Accord Diesel Power Gear, 21 F.4th at 1245 (collecting cases recognizing injuries are
traceable to plaintiffs in areas near regulated pollution).
42
See Ex. D (Norvell Decl.) ¶ 7; Ex. F (Thornton Decl.) ¶ 3.
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Tiffany Millsap live around 5.5 miles of the turbines. See Ex. B (A. Millsap Decl.) ¶ 3; Ex. C (T.
Millsap Decl.) ¶ 3. Since learning about the turbines, they have limited their time outside to
avoid exposure, which Mrs. Millsap worries will increase her already severe allergies, and could
aggravate allergy and asthma symptoms of family members when they visit. Ex. C (T. Millsap
Decl.) ¶¶ 13–16; cf. Franklin Cnty. Power, 546 F.3d at 936 (finding “a decrease in recreational
and aesthetic enjoyment” due to pollution could not be remedied by economic award).
These members’ concerns are consistent with the proven health effects of short and
prolonged exposure to NOx, ozone, and PM2.5—pollutants which the Gas Plant’s turbines emit.
See Ex. I (Suh Decl.) ¶¶ 24, 43, 55-56; accord Laidlaw, 528 U.S. at 183–84 (crediting members’
reasonable concerns). Pollution increases from the Gas Plant—particularly on top of the already
high levels of ozone and NOx pollution the greater Memphis area—will likely impact the health
of these members and public health generally, particularly for residents facing prolonged
exposures. See Ex. I (Suh Decl.) ¶¶ 16-20; 61-68. These members will continue to suffer
irreparable harm to their health and to their enjoyment of their communities absent an injunction.
The balance of equities here favors protecting the health and recreational wellbeing of
NAACP and NAACP MS’s members—and preventing illegal air pollution throughout the
region. Plaintiffs’ members and the broader public breathe Defendants’ unlawful pollution and
live daily with the increased health risks that pollution poses. They are reasonably concerned
about their health and the health of their families, and have reduced how often they do activities
they enjoy, such as inviting family members to their home and entertaining outdoors, because of
the pollution. 43 Where this injury is not only likely but already occurring, the balance of harms
43
See, e.g., Ex. C (T. Millsap) ¶¶ 14–16; Ex. G (Tipton Decl.) ¶¶ 12, 15–16, 18.
23
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“favor[s] the issuance of an injunction to protect” human health and the environment. Amoco
Moreover, where Congress has proscribed conduct, it has balanced the equities already.
Accord Burlington N. R.R. v. Bair, 957 F.2d 599, 601–02 (8th Cir. 1992) (“Congress has already
balanced the equities and has determined that, as a matter of public policy, an injunction should
issue where the defendant is engaged in, or is about to engage in, any activity which the statute
prohibits.” (citation omitted)). Though courts need not issue an injunction in all cases, neither
can they “override Congress’ policy choice, articulated in a statute, as to what behavior should
be prohibited.” United States v. Oakland Cannabis Buyers’ Coop., 532 U.S. 483, 497 (2001).
Defendants may complain an injunction would be costly to their business. But “[t]he
costs of pollution controls are a cost of doing business.” United States v. Ameren Missouri, 421
F. Supp. 3d 729, 815 (E.D. Mo. 2019), aff’d in part, rev’d in part on different grounds and
remanded, 9 F.4th 989 (8th Cir. 2021). They began construction and operation of the now-33-
turbine Colossus Gas Plant without a permit almost immediately after purchasing the property.
See supra Section 1.B. They did so despite public opposition to and express concerns with the
practice of using unpermitted gas turbines to power another xAI data center in nearby
Tennessee. 44 Moreover, MZX did apply to permit an entirely different gas plant to be
constructed on this very site. Though the permit is insufficient, 45 that gas plant—which promises
pollution controls and emissions limitations—is the only facility that MDEQ has reviewed and
considered, and it is the only one MZX is allowed to construct and operate. There is no Clean Air
Act loophole that allows a company to operate one facility while it goes through the required
44
See Ex. G (Tipton Decl.) ¶¶ 9–10 (describing community organizing against xAI’s earlier
development efforts in the Memphis area).
45
Ex. A-28 (NAACP and Young, Gifted and Green’s Permit Appeal).
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permitting process for another facility because it can’t be bothered to wait. The time and money
required to review a facility’s design, establish pollution limits, and install the necessary controls
before operation—the time and money necessary to protect the health and welfare of downwind
communities—are indelible costs of doing business. United States v. City of Painesville, Ohio,
644 F.2d 1186, 1194 (6th Cir. 1981) (Congress prioritized the Act even where judicial relief
“would be expensive”).
laws is in the public interest.” Commonwealth Oil Refin. Co., Inc. v. United States Env’t Prot.
Agency, 805 F.2d 1175, 1190 (5th Cir. 1986). Courts recognize preliminary injunctions requiring
Clean Air Act compliance are in the public interest. United States v. Gear Box Z Inc., 526 F.
Supp. 3d 522, 529 (D. Ariz. 2021) (“Congress enacted the CAA to combat air pollution, which
itself is a declaration of public policy.”); see also Utah Physicians for a Healthy Env’t v. Diesel
Power Gear, LLC, No. 2:17-cv-00032-RJS-DBP, 2020 WL 4282148, at *27 (D. Utah Mar. 6,
2020) aff’d in part and remanded on other grounds by 21 F.4th 1229 (10th Cir. 2021).
Here, reducing unacceptable risks of breathing illegal pollution serves the Clean Air
Act’s purpose of “protect[ing] and enhance[ing] the quality of the Nation’s air resources so as to
promote the public health and welfare and the productive capacity of its population.” 42 U.S.C.
§ 7401(b)(1). Allowing the facility to operate during litigation would reward private companies
that build their own personal power plants next to homes, schools, and churches without
obtaining permits and implementing controls in hopes they can just “pay a penalty” later.
This Court should enjoin the operation of the unpermitted Colossus Gas Plant without
requiring a bond. Federal Rule of Civil Procedure 65(c) allows courts to require security in
25
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instances of a preliminary injunction, but issuance and amount of such security is within the
discretion of the court. Kaepa, Inc. v. Achilles Corp., 76 F.3d 624, 628 (5th Cir. 1996) (quoting
Corrigan Dispatch Co. v. Casa Guzman, S. A., 569 F.2d 300, 303 (5th Cir. 1978) (per curiam)).
Indeed, a court “may elect to require no security at all.” Id. Courts elect not to require security
for plaintiffs “engaged in public interest litigation.” City of Atlanta v. Metro. Atlanta Rapid
Transit Auth., 636 F.2d 1084, 1094 (5th Cir. 1981) (affirming a decision not to require a bond
where the parties included a union and a welfare rights organization “seeking to protect citizens
. . . from perceived adverse economic and social consequences”). This guarantees that public
interest groups are not “barred from obtaining meaningful judicial review.” Red Wolf Coal. v.
N.C. Wildlife Res. Comm’n, No. 2:13-cv-60-BO, 2014 WL 1922234, at *10 (E.D.N.C. May 13,
2014); see also Louisiana Delta Serv. Corps v. Corp. for Nat’l & Cmty. Serv., No. cv25-378-
JWD-RLB, 2025 WL 1787429, at *31 (M.D. La. June 27, 2025) (contrasting a case seeking
equitable relief from a contractual dispute for money damages, where a bond would be more
appropriate). Here, the Court should exercise its discretion and waive the bond or require only a
nominal amount, consistent with courts’ practices in other environmental cases. See, e.g.,
Wisconsin Heritages, Inc. v. Harris, 476 F. Supp. 300, 302 (E.D. Wis. 1979) (collecting cases
IV. CONCLUSION
For the foregoing reasons, the NAACP and NAACP MS ask this Court to GRANT the
motion for a preliminary injunction and enjoin xAI and MZX Tech from operating any of the
unpermitted turbines at the Colossus Gas Plant until they obtain the necessary permits and
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