Ponderay discusses possible data center ban

The Ponderay City Council, led by Councilor Rick Larkin, discussed the possibility of enacting an ordinance to ban data centers within city limits during its August 3 meeting. The discussion was spurred by a recent move from the Sandpoint City Council, which unanimously approved a motion to define and prohibit larger-scale AI data centers.

Larkin highlighted several concerns, stating that data centers pose significant problems, including extreme power demands that could lead to brownouts and increased costs, high water consumption amidst the city's ongoing water issues, and limited permanent job creation (estimated at 20 to 50 positions maximum). He also mentioned issues of noise, light pollution, and security risks. While Councilor Brenda Thompson agreed with Larkin's proposal for a ban, Council President Phil McNearney expressed his general dislike for bans, asserting that existing regulations mandate data centers provide more power than they use and recirculate water.

Ponderay Planning Director KayLeigh Miller indicated that the city's current water system limitations would likely make installing a data center with large water consumption "self-limiting." She also noted that existing commercial zoning might not accommodate adequately sized data center parcels without utility extensions. Miller proposed amending the Ponderay City Code to exclude data centers from specific zoning use areas. Community members have also voiced concerns on social media, speculating that a local Avista expansion could be related to data center development. The council plans to revisit the discussion at a future meeting.