Hundreds Pack Pocatello City Hall to Oppose Proposed AI Data Center
Four-Hour Hearing Draws Overwhelming Public Opposition to Conditional Use Permit
A crowd of several hundred residents filled Pocatello’s City Hall on Thursday evening for a public hearing on a proposal to build an artificial intelligence data center at the site of the former Hoku Materials plant on River Park Way. The turnout was substantial, and the sentiment was clear: the overwhelming majority of those who stepped to the microphone want city officials to reject the application.
Lex Developments has applied for a conditional use permit to construct the data center at 1800 River Park Way, a property that once housed the Hoku Materials facility. Hearing Examiner Kathleen Lewis opened the proceedings shortly after 5:30 p.m. Thursday. The meeting stretched nearly four and a half hours, concluding just before 10 p.m.
More than 90 residents gave public testimony during the course of the evening. Of those who took a clear stance, more than 60 spoke in opposition to the project, while only a handful expressed support. Those who signed in as “uncommitted” largely delivered remarks that leaned against the proposal.
Applicant’s Presentation Raises Questions on Scale and Power Demands
Gus Shultz of Lex Developments opened the hearing with a brief presentation — no more than two minutes — before inviting questions from the examiner. Shultz described the application as straightforward: a conditional use permit to allow construction of a data center “at whatever scale we can,” adding that the company is awaiting the outcome of a study from Idaho Power that will determine the facility’s final design and capacity.
The question of electrical demand emerged as a central concern. Shultz noted that the former Hoku site had operated at approximately 125 megawatts. However, conflicting figures surfaced in documents attached to the hearing agenda: an Idaho Power statement in the application indicated the facility could require up to 100 megawatts, while a separate slideshow presentation identified a potential capacity of 200 megawatts. The discrepancy was not resolved during the hearing.
The power demand question loomed large for many residents, who raised concerns about strain on the regional electrical grid and the broader implications for the community’s infrastructure.
Residents Raise Concerns Over Transparency, Environment, and Long-Term Impact
Public opposition covered a range of issues, from environmental concerns to doubts about the developer’s transparency and the economic trade-offs the city might face.
Alasdair Macleod, who identified himself as a resident of the area with roughly two decades of experience working in the data center industry, offered a nuanced perspective. While he characterized data centers as generally less disruptive than other heavy industrial operations, he cautioned that weak local planning can lead to unfavorable outcomes. “I’ve seen local authorities that will be blinded by the large dollar value of the investment,” Macleod said, warning that cities sometimes surrender recurring tax revenue through excessive tax breaks granted to attract such facilities.
Maximo Orr, a Pocatello public school teacher, argued that approving the permit in the face of such strong community resistance would be a mistake. “It doesn’t make much sense to me to go against the clear majority,” Orr said, urging city leaders to align their decision with the public’s expressed will.
A lighter moment turned tense when Hanna Romes, listed as an uncommitted speaker, began playing audio of ambient noise produced by an operating data center. When Lewis asked whether she was speaking uncommitted, Romes replied she was “unsure.” The exchange escalated when another audience member shouted at the hearing examiner, prompting Lewis to call on a law enforcement officer to address the situation. Whether the individual left voluntarily or was escorted out was not immediately clear.
Among the few supporters, John Edwards expressed optimism that a project of this scale could provide economic opportunity and give younger generations a reason to remain in Pocatello. Local resident Lindy Brian, speaking as a young person who grew up in the city, pushed back directly, describing the Portneuf River, outdoor recreation, and a sense of community as the qualities that define life in southeast Idaho — and arguing that transparency from the applicant had been lacking.
What Comes Next
Hearing Examiner Kathleen Lewis did not issue a ruling at the close of Thursday’s session. A decision on the conditional use permit application from Lex Developments is expected to follow in the coming weeks. The outcome will be closely watched by residents who packed City Hall, as well as by city officials navigating competing interests of economic development and community concerns.
Local government activity in Pocatello has drawn considerable public attention in recent months. Residents and officials are also engaged in a broader conversation about city infrastructure priorities, including a split-decision vote to study a potential Pocatello City Hall relocation. For those tracking local elected races that may shape future decisions like these, the Bannock County District 2 commissioner contest is among the contested races on the May 19 primary ballot.