City denies $2.6 billion data center, but developer vows to appeal
An Idaho city has said no to a plan for a large-scale data center.
East Idaho News reports the Pocatello City Council upheld an earlier denial of a proposed $2.6 billion data center in the city.
As BoiseDev reported, Lex Developments applied to convert the former Hoku Materials polysilicon plant into an AI data center on 49 acres of land on the west side of Pocatello near a rail line.
The developer’s attorney appealed the decision to the Pocatello City Council, saying the hearing examiner should have approved the project with conditions instead of denying it.
The city council disagreed.
After more than 90 minutes of testimony, the council voted 4-1 to uphold the hearing examiner’s decision, which keeps the project off the table for now.
About 90 members of the public testified on the proposal, with 60 saying they didn’t want the project approved, 20 uncommitted, and three in favor, according to a Local News 8 tally.
Pocatello Mayor Mark Dahlquist questioned Lex Developments’ Gus Shultz on the intended purpose of the data center, asking if any companies were set to use the proposed data center. Shultz claimed he had “multiple” potential users and said he had a signed letter of intent for the project.
“Why aren’t any of them here?,” Dahlquist asked Shultz to applause, according to East Idaho News.
The lone dissenting vote on the council came from Council Member Dakota Bates, who expressed concern about the possibility of an appeal, which would happen in district court.
“I’m very concerned about affirming the decision, which leads us down the path to Mr. Shultz (filing) exhausting appeals, taking the city to court, and dragging this out further and costing taxpayers money,” Bates said, according to LocalNews8.
Shultz told East Idaho News that he “absolutely” plans to appeal.
Lex Developments now owns the property, according to Idaho commercial real estate firm CBRE. Portneuf Capital sold the site to Lex earlier this spring, CBRE said.