Idaho Town Pushes Back on Big Tech Data Center
The Pocatello City Council denied a $2.6 billion AI data center project proposed by Lex Developments due to concerns over local control and water usage. The developer plans to appeal the decision to district court. This local action aligns with a new Idaho law requiring closed-loop water systems for new data centers.
Pocatello, Idaho, recently voted to deny a proposed $2.6 billion AI data center project by Lex Developments at the former Hoku materials site. The City Council's 4-1 vote upheld an earlier hearing examiner's recommendation, rejecting the plan for a large server farm on 49 acres. Council members expressed concerns over local control and public welfare, particularly regarding water usage.
Lex Developments' attorneys argued the city should have approved the project with conditions rather than an outright denial. However, the council disagreed after extensive testimony. Council member Dakota Bates cast the sole dissenting vote, not in support of the project itself, but out of concern that the denial would lead to a costly legal battle for taxpayers in district court.
Developer Gus Schultz has confirmed his intention to appeal the decision, indicating the dispute is far from over. This local decision comes as Idaho lawmakers passed a new law requiring future data centers to implement closed-loop water systems, a direct response to growing anxieties about the significant water consumption of such facilities. The situation in Pocatello reflects a broader trend of small towns grappling with the impacts of AI data center development.