AI Data Center Appeal Denied by Pocatello

News Clip2:17KPVI News·Pocatello, Bannock County, ID·7/17/2026

The Pocatello City Council voted to affirm the denial of a conditional use permit for a proposed AI data center by Lex Developments at the former Hoku Materials site. The applicant, Gus Schultz, will now have to wait 12 months to reapply for the permit. Community members showed disapproval, and the council also discussed future modifications to city code for data centers.

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Gov: Pocatello City Council, Kathleen Lewis, Anne Swanson, Dakota Bates

The Pocatello City Council affirmed the denial of a conditional use permit for an AI data center proposed by Lex Developments at the former Hoku Materials site. During the appeal process, the council acted in a quasi-judicial role, reviewing the initial ruling by examiner Kathleen Lewis without taking new information.

Despite the meeting not being open to public comment, community members displayed signs to show their disapproval of the project. The city council ultimately voted to affirm the examiner's decision, finding Lex Developments' plan inadequate according to city code. Councilwoman Anne Swanson was absent, and Councilman Dakota Bates cast the lone dissenting vote, arguing the proposal met the qualifications for the permit despite his own reservations.

Bates expressed disappointment with the applicant's handling of the controversial issue and voiced concerns over the lack of specific data center regulations in Pocatello's city code. He feared that further appeals could lead to a judicial review favoring the applicant, leaving residents with less say in future developments. Gus Schultz, the applicant, clarified that the closed-loop cooling system would require approximately 300,000 gallons of water, comparable to other industrial facilities.

Ultimately, due to