Hoku data center appeal headed to City Council July 16
Lex Developments LLC is appealing the denial of a conditional use permit for its proposed AI data center project on the former Hoku site in Pocatello, Idaho. The Pocatello City Council is scheduled to hear the appeal on July 16, following significant public opposition and a hearing examiner's finding that the project fell short on public facilities, environmental impact, and public health and welfare. The Council's decision is a critical step, but not final, as further permits or court appeals are possible.
Lex Developments LLC is challenging the denial of a conditional use permit for its proposed 59-acre AI data center project, located on the former Hoku site at 1800 River Park Way in Pocatello, Idaho. The Pocatello City Council is scheduled to review the developer's appeal on July 16 at 6 p.m. in City Hall. This follows a May 14 public hearing where hundreds of local residents expressed opposition to the project.
Hearing Examiner Kathleen Lewis had previously denied the application, overturning a city staff recommendation for approval. Lewis cited deficiencies in three key areas: public facilities, environmental impact, and public health and welfare. Lex Developments, represented by attorney Jon Stenquist, filed its formal appeal on June 1, arguing that the conditional use permit requirement was unwarranted, the denial was arbitrary, and an outright rejection was unjust given the staff's conditional approval recommendation.
The proposed development involves building seven 100,000-square-foot AI data center buildings, representing a projected $2.26 billion construction investment and promising 150 to 300 permanent local jobs, with property tax revenue benefiting Bannock County. The site has been largely idle since the Hoku polysilicon plant went bankrupt in 2013.
While the City Council's decision on the CUP is crucial, it will not be the final word. If approved, Lex Developments must still navigate the full building permit process. Conversely, if the appeal is denied, either the developer or opposing parties could escalate the matter to Bannock County's 6th Judicial District Court, indicating a potentially prolonged legal battle.