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Local Government

Bannock County Puts 180-Day Hold on Data Center Permits in Unincorporated Areas

Idaho State Capitol rotunda

Bannock County commissioners have approved a 180-day emergency moratorium on new data center permit applications in unincorporated areas of the county, giving planning staff time to study the infrastructure and land-use implications of a rapidly growing industry before any new projects move forward.

The moratorium took effect July 30 and will remain in place through January 26, 2027, unless commissioners act to modify or lift it sooner.

What the Moratorium Covers — and What It Doesn’t

The pause applies only to unincorporated portions of Bannock County. Land within city limits, including the city of Pocatello, is not affected. A data center project currently under review by the city is also unaffected and will continue through the municipal permitting process on its normal timeline.

The action does not block any existing data center operations. It halts only new permit applications in county jurisdiction while staff develop a regulatory framework specifically designed for that type of facility.

Planning Director Hal Jensen explained the rationale in straightforward terms: “With data center interest growing across our region, putting a temporary pause in place allows our staff to study water usage, energy demands, and land-use impacts thoroughly before any county permits are considered.”

That kind of deliberate approach reflects sound governance — commissioners are choosing to understand what they are permitting before they permit it, rather than playing catch-up after facilities are already built.

A Separate Ordinance in the Works

The moratorium is connected to a broader effort already underway to update Bannock County’s Land Use and Development Ordinance. When that process began, data centers were not included in the scope of the rewrite. Rather than delay the larger ordinance update to add data centers — which would have slowed a wide range of other land-use reforms — commissioners and planning staff decided to pursue a standalone set of data center regulations on a separate track.

Work on the dedicated data center ordinance will begin once public hearings on the broader Land Use and Development Ordinance rewrite have concluded. County officials have indicated that residents will have multiple opportunities to review and comment on any proposed rules before they are formally adopted.

That commitment to public input is significant. Data centers are large-scale industrial facilities that can place heavy demands on local water supplies and electrical infrastructure — resources that affect neighboring landowners, agricultural operations, and rural communities that depend on predictable access to both. Getting those regulations right from the start protects existing residents and property owners while still leaving the door open for responsible development.

Growing Regional Interest in Data Centers

Bannock County’s action comes as interest in data center development has been climbing across southeastern Idaho and the broader Intermountain West. The region’s relatively low land costs, available power infrastructure, and geographic position have drawn attention from technology companies looking to expand computing capacity.

While that economic interest can bring jobs and tax revenue, it also brings legitimate questions about how such facilities fit within rural and semi-rural counties that were not designed around their infrastructure demands. Counties and cities across Idaho are working through similar questions at varying stages.

A developer in Pocatello recently sought reconsideration of a city decision, raising questions about permitting process standards — a sign that local land-use decisions in the county seat are also drawing increased scrutiny as development interest intensifies.

The 180-day window is relatively short in terms of municipal rulemaking. Planning staff will need to move efficiently through research, public engagement, and ordinance drafting to have a workable set of data center regulations ready before the moratorium expires in late January.

What Comes Next

Bannock County Planning and Development staff will begin researching data center impacts — including water consumption, power load requirements, and land-use compatibility — as soon as public hearings on the broader county ordinance rewrite are wrapped up. Draft regulations will then be circulated for public review before any formal adoption process begins.

Residents in unincorporated Bannock County who have questions or concerns about the moratorium or the upcoming ordinance process can contact the county’s Planning and Development office directly. Commissioners have indicated that community feedback will be part of the rulemaking process before any permanent data center regulations take effect.

For more on local government decisions affecting Bannock County and the region, visit Idaho News for statewide coverage.

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