Pocatello Public Hearing on Proposed AI Data Center Draws Packed Crowd, Heated Exchanges
A public hearing at Pocatello City Hall drew hundreds of residents Thursday evening as the community weighed in on a proposal to build an artificial intelligence data center on the site of the former Hoku polysilicon plant along River Park Way. The gathering turned contentious at multiple points, with audience members shouting, booing, and interrupting speakers — leading Pocatello police to escort at least some attendees from the building.
So many people turned out that overflow crowds were left standing in hallways and outside the building, watching a livestream of the proceedings. The high turnout reflected the depth of community interest — and community skepticism — surrounding the project.
Arizona Developer Faces Pointed Questions
The hearing examiner opened the session by allowing a representative from Lex Developments, an Arizona-based company that purchased the roughly 59-acre industrial site, to present the proposal. Gus Shultz spoke on behalf of the company, which has filed for a conditional use permit to move forward with data center construction. Lex Developments has described the project as a major economic driver that would create hundreds of jobs for the Pocatello area.
However, Shultz struggled to answer specific questions posed by the hearing examiner. When pressed on the power demands and physical scope of the planned campus, he acknowledged that final figures have not yet been determined. “We don’t know the size yet until we know the power, once we get more research,” Shultz said, adding that preliminary designs include approximately seven buildings on the site. The audience responded with audible frustration, with one attendee calling out that Shultz had failed to “make a sale.”
Shultz also addressed concerns about water consumption, claiming the facility would use no more water than four or five households. That figure drew an immediate uproar from the crowd, with at least one resident calling it a severe underestimation of what large-scale data center operations actually require. Shultz noted the company is in early discussions with Idaho Power to assess the facility’s energy needs.
Jennifer Flynn, assistant planner for the City of Pocatello’s Planning Department, clarified the procedural context for the hearing. She described the application as requesting permission to develop the approximately 59-acre industrial parcel for data center use. Flynn emphasized that even if the conditional use permit were approved, additional permitting, environmental analysis, and financial standards would still need to be met before any construction could begin. “The city wanted to bring this proposal to the public’s awareness to give interested parties the opportunity to provide public comment,” Flynn said.
Flynn also read a statement from Idaho Power indicating the utility believes it can accommodate the facility’s power needs without disrupting service to existing customers, based on preliminary engineering analysis. However, Idaho Power noted more detailed studies are still required, and that Lex Developments would bear the cost of any necessary upgrades to the power grid.
Supporters Cite Jobs and ISU Ties; Critics Raise Environmental Concerns
When the hearing examiner opened the floor to public comment, a clear split emerged between residents who see the project as a transformative economic opportunity and those who fear its environmental and infrastructure impacts.
Supporters pointed to the promise of well-paying construction jobs during the build phase and more than 150 permanent positions once the facility is operational. Pocatello resident John Edwards called the project “a historic and transformative opportunity,” noting that local schools, parks, and recreation programs could benefit from the tax base expansion without burdening existing residents. Several supporters also highlighted the timing relative to Idaho State University’s newly announced Artificial Intelligence Sciences major, arguing a local data center could help retain ISU graduates in Pocatello’s technology sector rather than sending them elsewhere to find work.
One 2026 ISU software engineering graduate, identified as Ralph, suggested the facility’s heat output could actually be put to productive use if the city built out infrastructure to capture it. He described the proposed closed-loop cooling system as compatible with such an approach.
Critics, however, challenged the integrity of that closed-loop system. Jim DiSanza, a Pocatello resident and department chair at ISU, argued that no closed cooling system is truly sealed — contending that efficiency losses and periodic flushing mean large volumes of chemically altered water would ultimately be discharged. Linda Engle, representing the Portneuf Resource Council, raised concerns about waste heat being vented into the atmosphere and the possibility of a heat island effect near the Portneuf River.
Despite the hearing examiner’s attempts to keep testimony focused on land-use questions, community members repeatedly steered the discussion toward broader questions about data center operations, water quality, and environmental impact.
What Comes Next
Thursday’s public hearing marked the first formal step in the conditional use permit process for the Lex Developments proposal. Following the hearing, the examiner will review public testimony alongside the permit application. If approved, Lex Developments would then face additional permitting requirements, environmental review, and financial qualification standards before construction on the former Hoku site could begin. Community members who did not speak at the podium were also given the opportunity to submit written testimony as part of the record.