Pocatello Hearing Examiner Denies AI Data Center Permit

The Pocatello Hearing Examiner denied a conditional use permit for a proposed artificial intelligence data center at the former Hoku Materials site in Pocatello, Idaho, following overwhelming public opposition and the applicant's failure to demonstrate adequate infrastructure support.

Lex Developments LLC, represented by Gus Shultz, applied for the permit to build the facility on 59 acres at 1800 River Park Way. The project, a partnership with property owner Portneuf Capital LLC, sought entitlements to market the site to a data center operator, though no specific operator had been secured.

Hundreds of residents attended the May 14, 2026, public hearing, with over 60 speaking against the project and only a handful in favor. Critics and the hearing examiner cited a lack of specific data on water, sewer, and power consumption. Documents presented conflicting power requirements ranging from 100 to 200 megawatts; Idaho Power estimated a 100-megawatt facility would roughly double the city's annual energy use and stated it would be legally obligated to serve the facility if approved, provided Lex Developments covered upgrade costs.

Hearing Examiner Kathleen Lewis denied the permit, ruling the application failed to meet approval standards under Section 17.02.130.D4, as the applicant did not adequately demonstrate that public facilities and services could support the project. The findings require any future application to include impact analyses for air quality, water, wastewater capacity, and power. Lex Developments may submit a new application or request reconsideration through the city council.