Proposed AI data center in Pocatello denied after massive public pushback

A proposed AI data center in Pocatello, Idaho, was denied after a public hearing where over 90 residents opposed the project. The Hearing Examiner ruled that Lex Developments, LLC’s application failed to meet standards, particularly in demonstrating how the site could be adequately served by public utilities like power, water, and wastewater. The examiner also noted the absence of an air quality analysis, requiring further study before any future applications. The decision stems from Section 17.02.130.D4 of the city’s code, which mandates proof that public infrastructure can support the project. Assistant Planner Jennifer Flynn stated that Lex Developments can either request a reconsideration—reviewed by the city council without additional public testimony—or submit a revised conditional use permit (CUP) application with the required analyses. Lex Developments has not yet announced next steps, though a reconsideration would focus on procedural errors rather than public input. The company’s representative, Gus Shultz, did not immediately respond for comment. Residents’ concerns centered on straining local resources, particularly in a region already facing infrastructure challenges. The former Hoku Materials site, where the data center was proposed, remains undeveloped pending further action. If Lex Developments proceeds with a new application, it must address power, water, wastewater capacity, and air quality impacts to comply with city standards. The outcome could influence future AI infrastructure projects in rural or resource-limited areas.