May 19, 2026
POCATELLO An application that would allow the potential construction of an artificial intelligence data center has been denied.On Monday, the minutes were posted for a public hearing in front of the Pocatello Hearing Examiner, which saw more than 90 people share testimony on a conditional use permit to build an AI data center on the former Hoku Materials site. According to these minutes, the examiner has denied this application.Based on review of the application for the conditional use permit, analysis of the staff report and the applicants presentation received during the public hearing regarding this conditional use permit application, the Hearing Examiner denies the conditional use permit, finding the application does not meet the standards for approval, the minutes read.According to Assistant Planner Jennifer Flynn, the applicant, Lex Developments, LLC, could either submit a reconsideration request, which would go before the city council, or it could submit a new CUP application.The examiners analysis of the CUP permit review criteria offers explanation on why the application was denied.Of the seven sections of code, one section was found to be non-compliant. Section 17.02.130.D4 asks whether the project could be adequately served by public facilities and services.The application does not adequately address that the project could be served by public facilities and services. The applicant should conduct/impact analysis for power, water and wastewater capacity, air quality analysis prior to submitting another application, the findings read.If Lex Developments were to submit a reconsideration request, Flynn clarified that this would not involve another public hearing in front of the city council.Its important to note that it would not be a public hearing. It would be something that the public could sit in on, but it wouldnt be an opportunity for the public to speak to the issues, and thats primarily because the purpose of a reconsideration is to determine if something was done wrong procedurally in the CUP process, Flynn said.At this time, its unclear what course of action Lex Developments will take, whether thats asking for a reconsideration, submitting a new application or accepting this result.Gus Shultz, of Lex Developments, could not be immediately reached for comment.This article was originally published by Logan Ramsey with East Idaho News. ...read more read less
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