Hundreds show up for public hearing on proposed AI data center

Hundreds show up for public hearing on proposed AI data center

News ClipEast Idaho News·Pocatello, Bannock County, ID·5/15/2026

Hundreds of Pocatello residents attended a public hearing to discuss Lex Developments' proposal for an AI data center at the former Hoku Materials plant site. The vast majority of speakers opposed granting a conditional use permit, citing concerns over power and water usage, and the vagueness of the application. The Hearing Examiner's decision is pending, with potential for appeals to the City Council and Idaho District Court.

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Gov: Pocatello City Hall, Hearing Examiner Kathleen Lewis, Pocatello City Council, Idaho District Court

Pocatello, Idaho, witnessed a lengthy public hearing on Thursday evening as hundreds of residents gathered at City Hall to voice their opinions on a proposed artificial intelligence data center by Lex Developments. The company, led by Gus Shultz, plans to build the facility at 1800 River Park Way, the former site of the Hoku Materials plant. The purpose of the hearing, overseen by Hearing Examiner Kathleen Lewis, was to consider a conditional use permit (CUP) for the project.

Over four and a half hours, more than 90 people offered public testimony, with an overwhelming majority (over 60 speakers) expressing strong opposition to the permit. Concerns centered on the project's vague details regarding electrical capacity, water consumption, and sewer needs. Public school teacher Maximo Orr argued against approving the application given the clear public sentiment, while resident Lindy Brian criticized the lack of clarity from Lex Developments on critical infrastructure impacts.

Amidst the opposition, a few individuals spoke in favor, including Alasdair Macleod, who highlighted his decades of experience in the data center industry but also warned against "weak local planning" and generous tax breaks. John Edwards expressed hope that such a project could be a catalyst for local youth to stay in Pocatello. Theodore Pollock, a neutral speaker from Idaho State University, sharply criticized Lex Developments' application as unserious and a perceived attempt to "probe a small community for weakness."

Idaho Power, represented by Matthew Stucki, maintained a neutral stance, clarifying that if approved, the applicant would be fully responsible for all system upgrade costs, ensuring no impact on regular ratepayers. The proposed facility's electrical needs varied in discussions, from 100 MW in one document to 200 MW in a presentation, with Lex Developments awaiting a detailed study from Idaho Power. The Hearing Examiner's decision is forthcoming, with provisions for appeal to the City Council and subsequently to the Idaho District Court.