A packed public hearing at Pocatello City Hall erupted in disruption Thursday evening as community members challenged an Arizona company’s proposal to construct an artificial intelligence data center on the former Hoku polysilicon plant property.
Hundreds of residents filled the building to capacity, forcing many to watch a livestream from the lobby or outside as the hearing examiner considered Lex Developments’ application for a conditional use permit on approximately 59 acres of industrial-zoned land at 1800 River Park Way.
Developer Struggles to Answer Key Questions
Gus Shultz, representing Lex Developments, faced immediate skepticism when he could not provide specific information about power requirements or the full scope of the proposed facility. Shultz acknowledged uncertainty about the campus size, stating the company is still working with Idaho Power to determine electrical demands.
The presentation drew audible disapproval from attendees when Shultz claimed water consumption would equal only four or five households. One citizen called that estimate a severe underestimation for an AI data center operation.
According to Shultz, the site plan currently includes seven buildings, though final dimensions remain undetermined pending power capacity studies. Police officers escorted some disruptive attendees from the chambers as tensions escalated.
City Officials Outline Multi-Step Approval Process
Jennifer Flynn, assistant planner for Pocatello’s Planning Department, clarified that the conditional use permit represents only the initial stage of a lengthy approval process. Even if granted, the development would require additional permitting and regulatory reviews before construction could commence.
Flynn read a statement from Idaho Power indicating the utility has conducted preliminary engineering analysis but needs more detailed studies to fully define infrastructure requirements. The power company stated it believes service can be provided to the proposed facility without affecting existing customers, though Lex Developments would bear responsibility for funding any necessary system upgrades.
Financial standards must also be met by the company before the project can advance, Flynn told the hearing.
Supporters Cite Jobs and Economic Growth
A small number of residents spoke in favor of the proposal, emphasizing potential economic benefits for Bannock County. Pocatello resident John Edwards called the data center a potentially transformative opportunity, projecting hundreds of construction positions and more than 150 permanent jobs once operational.
Proponents argued the facility would generate revenue for schools, recreation programs, and public infrastructure without raising property taxes on current residents. Some supporters pointed to Idaho State University’s newly announced Artificial Intelligence Sciences major as evidence of potential synergy between the academic program and a local data center employer.
Ralph, an ISU software engineering student graduating in 2026, suggested the city explore using waste heat from the facility’s closed-loop cooling system for municipal heating infrastructure.
What Comes Next
The hearing examiner will review public testimony submitted both in writing and during Thursday’s session before issuing a decision on the conditional use permit. If approved, Lex Developments must complete detailed engineering studies, obtain multiple construction and environmental permits, and demonstrate financial capacity to complete the project. Idaho Power will conduct comprehensive infrastructure assessments to determine grid upgrades required to serve the facility. No timeline has been established for when a final determination on the permit application will be announced.