Data centers in Bannock County, Idaho: 1 project mapped

The developer's case is procedural. Lex's attorney, Jon Stenquist, argued that the city should never have required a conditional use permit for a use on land already approved for heavy industry, and that the hearing was driven by "external political pressure." He also said city staff had recommended approval; East Idaho News reported that the staff report found the application compliant with code but made no recommendation, and Planning Director Brent McLane said, "We haven't made a recommendation for approval or denial." Council member Dakota Bates, the lone vote for Lex, warned that "there's high potential that a judge would find in the applicant's favor," leaving the city unable to attach conditions. Schultz told the Journal the denial was "the best thing that could have happened for me" and that he would sue. A resident has since started a recall effort aimed at Bates.

The county has moved faster than the city. Bannock County has a temporary moratorium on new data centers in its unincorporated areas, and Commissioner Jeff Hough is convening a work group with Power, Oneida, Franklin and Caribou counties to draft a model ordinance each can adapt, the Post Register reported. "Everybody's exposed, except for Bannock County, because we have the moratorium," Hough said. He said public hearings on local rules would likely start in January and that he wants legislators to revisit Idaho's property tax exemption for data center server equipment. Khan urged the group to write noise limits into any rules, since Idaho has none, and estimated a fully grid-powered version of the Hoku project could spend more than $70 million a year on electricity, which he said makes on-site gas generation likely. A state law in force since July 1 restricts data centers' consumptive use of water for cooling.

Lex filed for reconsideration on July 29, giving the City Council 60 days, until about September 27, to rule in writing; no decision has been published. If the denial stands, Schultz can go to the 6th Judicial District Court in Bannock County, and if he wins there the project could proceed under the code in force when he applied. Otherwise Lex would have to wait a year to reapply. Pocatello is weighing either a moratorium like the county's or a rewrite of the zoning code, which McLane estimated could take 12 to 18 months. Lex has not named a tenant, and its power source and water use remain undisclosed.