Pocatello denies Conditional Use Permit for AI Data Center at Former Hoku Plant

POCATELLO, Idaho (KIFI) — The City of Pocatello Hearing Examiner has denied the Conditional Use Permit application to build a proposed AI Data Center on the former Hoku polysilicon plant site.

According to an official Facebook post, the application by Lex Developments, an Arizona-based company that purchased the property, "does not meet the standards for approval under Chapter 17.02.130 D of the Pocatello Municipal Code."

This decision follows a tense public hearing at City Hall in Pocatello, which saw more than 300 residents gather to voice their opinions on the project. The majority were in opposition to the proposed data center, expressing concerns that the data center would pull water from state agriculture and Pocatello's resources.

RELATED: Tensions Rise at Public Hearing for Pocatello AI Data Center Proposal

Lex Development, however, has claimed the project would work on a "closed loop system," using around 80-95% less water than traditional data centers.

Why the Permit Was Denied

According to official meeting minutes, the Hearing Examiner ruled that the developer failed to prove the project would not negatively impact the community. Specifically, the application did not "adequately address that the project would not be detrimental to the public interests, health, safety, or welfare of the city."

Furthermore, the Hearing Examiner stated that Lex Developments must conduct comprehensive impact analyses before submitting any future applications.

"These studies should include at a minimum: wastewater discharge quantities; identification of pretreatment systems if needed; potential chemical discharge; water demand calculations; long term electrical infrastructure requirements and environmental impacts related to emissions, water utilization and wastewater discharge."

Under the City code, all parties now have 14 days to file an appeal. For more information, click HERE.

This is a developing story. Local News 8 will provide additional information throughout the evening.