Pocatello Opinion Column Addresses Data Center Development, Permit Denial, and Community Benefits
An opinion column reflects on Pocatello's recent denial of a data center permit, arguing that the city should strategically embrace future data center development due to its climate advantages. The author proposes three key protections for the community, including property taxes and community benefit payments, to ensure such projects benefit residents. The piece suggests that a well-structured data center could significantly boost the city's budget.
Ali Khan, CEO of Pocatello-based MOATiT, argues in an opinion piece for the Idaho State Journal that Pocatello should strategically embrace data center development, despite a recent permit denial for the "Lex project" at the Hoku site. Khan, whose company has operated its own data center since 2013, posits that the city's cold, dry climate offers a significant advantage, reducing cooling costs and freeing up substantial electricity for the grid compared to data centers in warmer regions like Arizona. He notes that a 100-megawatt facility in Pocatello could save 35 megawatts annually, equivalent to the power usage of nearly 28,000 homes.
Khan attributes the Lex project's permit denial to a "shelf company" failing to secure trust regarding water, noise, and remediation, emphasizing that rejecting a bad deal doesn't mean rejecting the future. He highlights the ongoing data center boom in the region, citing Meta's multi-billion-dollar campuses near Boise and large projects in Montana as evidence. Khan then proposes a framework for Pocatello to engage with data center developers, focusing on three key protections: ensuring projects contribute through property taxes from day one without discretionary exemptions; implementing a change-of-control clause that guarantees community revenue even if a facility exceeds the state's $800 million property tax exemption threshold or is sold; and negotiating an upfront community-benefit payment funded by the operator's climate-related savings.
Illustrating the financial impact, Khan suggests a $500 million facility could generate approximately $6 million annually in property taxes, plus an additional $4.5 million in community benefits. He argues this combined revenue, totaling around $10.5 million annually from a single well-structured facility, could significantly bolster Pocatello's budget, which currently faces a $1.3 million deficit. This influx of funds could restore community grants, rebuild reserves, and potentially reduce property tax burdens for residents, transforming the city's financial outlook from austerity to stability.