Proposed AI data center denied after massive public pushback

Proposed AI data center denied after massive public pushback

News ClipEast Idaho News·Pocatello, Bannock County, ID·5/18/2026

An application for an artificial intelligence data center in Pocatello, Idaho, submitted by Lex Developments, LLC, has been denied. The denial by the Pocatello Hearing Examiner followed significant public opposition and concerns regarding the project's impact on public facilities like power, water, and wastewater capacity. Lex Developments may seek reconsideration or submit a new application.

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Gov: Pocatello Hearing Examiner, Pocatello City Council

An application for a conditional use permit to construct an artificial intelligence data center on the former Hoku Materials site in Pocatello, Idaho, has been denied by the Pocatello Hearing Examiner. The decision, posted Monday, followed a public hearing where over 90 individuals provided testimony regarding the proposed facility.

The Hearing Examiner cited non-compliance with Section 17.02.130.D4 of the city code, stating that the application "does not adequately address that the project could be served by public facilities and services." The findings specifically recommended that the applicant conduct impact analyses for power, water, wastewater capacity, and air quality prior to submitting any future applications.

Lex Developments, LLC, the applicant, has two potential courses of action: either submit a reconsideration request to the city council or file a new conditional use permit application. Assistant Planner Jennifer Flynn clarified that a reconsideration request would not involve another public hearing, focusing instead on procedural correctness. As of now, Lex Developments, whose representative Gus Shultz could not be reached for comment, has not indicated its next steps.