Council discusses next steps to ban data centers

The Sandpoint City Council, in a meeting on July 15, unanimously approved a motion to define and propose a code that would prohibit larger scale AI data centers within city limits. This decision came after Councilor Pam Duquette sought to dispel concerns that the city was encouraging data center development, clarifying her goal was precisely the opposite: to preemptively ban them.

Residents had expressed opposition on social media, citing potential health impacts, developer influence, and a desire to preserve the city's character. Duquette highlighted the significant demands data centers place on electricity and water resources, and the environmental concerns they raise, especially given the current "boom" in Idaho.

Following discussions with city planner Bill Dean and city attorney Fonda Jovik, Duquette proposed removing data centers as an allowable option in the city's industrial zoning code. Mayor Jeremy Grimm and other councilors, including Joel Aispuro and Kyle Schreiber, emphasized the need for a precise definition of data centers to differentiate between small, on-premises server firms and large-scale AI facilities, and to protect residents' data privacy. Schreiber noted that changing the rules preemptively is crucial, as the city would be legally obligated to follow existing codes if a developer submitted a permit application before changes were enacted. Mayor Grimm estimated the code change process would be relatively simple, taking approximately two months.