A federal judge denied a motion by xAI seeking to dismiss an NAACP lawsuit accusing the SpaceX-owned company of failing to obtain permits needed to operate the gas turbines powering its Colossus data center outside Memphis.

Suing on behalf of the NAACP, the Southern Environmental Law Center said the AI company had “installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits.” It also accused xAI of violating the Clean Air Act.

xAI sought to have the lawsuit dismissed, claiming that the turbines are exempt from permitting requirements because they’re mobile. The company also argued that the plaintiffs did not have the standing to sue.

“Because the plaintiffs have statutory standing under the Clean Air Act, because the combustion turbines are not ‘mobile sources’ under Mississippi’s [State Implementation Plan], and because the citizen suit provision does not violate Article II of the Constitution or the private nondelegation doctrine, the plaintiffs’ claims will proceed,” Judge Debra M. Brown wrote in her decision.