Pocatello to host public hearing on $2.26B AI Data Center proposal

POCATELLO, Idaho (KIFI) — The City of Pocatello will hold a public hearing this Thursday, May 14, to address a massive proposal that could transform a long-dormant area into an Artificial Intelligence (AI) Data Center.

Arizona-based Lex Developments has applied for a Conditional Use Permit (CUP) to construct a $2.26 billion Artificial Intelligence (AI) campus at 1800 River Park Way—the site of the former Hoku polysilicon plant, as first reported by the Idaho State Journal. If approved, the project would repurpose the area into a high-capacity data hub.

Environmental Concerns: Water and the Aquifer

The proposal has sparked significant pushback from residents, particularly within the Life In Pocatello Facebook group. With Idaho facing an ongoing drought emergency and declining levels in the Eastern Snake Plain Aquifer, several residents have voiced concern about the tremendous amount of water AI data centers use to cool massive server banks.

However, Lex Developments’ permit application seeks to address these fears directly. The company proposes using a "closed-loop liquid cooling" system, which they claim reduces water usage by 80-95% compaired to the "evaporative cooling" method used by older AI-data centers.

According to the document, the system works like the coolant in a car's engine, circulating continuously in a sealed and self-contained system, so that the "facility's ongoing potable water demand for cooling is dramatically reduced compared to traditional methods."

Public Hearing Details

The City of Pocatello had already scheduled a public hearing regarding the project ahead of the online backlash, as required under Idaho State Code. In an official Facebook post, city leadership emphasized the importance of public testimony.

"There is a lot of information currently being shared regarding potential development proposals in the community, and public input is an important part of the process," states the post. "Thank you for being part of the conversation...We encourage residents to attend, listen, and share their comments respectfully."

For more information on the public hearing and how the process will work, click HERE.