On the agenda: Pocatello meeting — data center (May 14)

MEETING AGENDA
CITY OF POCATELLO
HEARING EXAMINER
MAY 14, 2026 | 5:30 PM
POCATELLO CITY HALL | COUNCIL CHAMBERS | 911 NORTH 7TH AVENUE
In accordance with the Americans with Disabilities Act, it is the policy of the City of Pocatello to offer its public programs, services, and meetings in a manner that is
readily accessible to everyone, including those with disabilities. If you are disabled and require an accommodation, please contact Skyler Beebe with two (2)
business days’ advance notice at 208.234.6248, [email protected] or 5815 South 5th Avenue, Pocatello, Idaho. Advance notification within this guideline will
enable the City to make reasonable arrangements to ensure accessibility.
The Hearing Examiner is a citizen advisory group to the City Council. The Hearing Examiner is charged with making decisions for conditional use permit and variance
applications. All Hearing Examiner meetings are recorded for record retention and transcription.
The following is the official agenda of the Hearing Examiner meeting. Discussion and action will be limited to those items on the agenda. Any citizen who wishes to
address the Hearing Examiner shall first be recognized by the Hearing Examiner, and shall give his/her name for the record. If a citizen wishes to read
documentation of any sort to the Hearing Examiner, he/she shall first seek permission from them. Oral testimony may be restricted to no more than 3 minutes per
person.

1. DISCLOSURES.
Disclose who was talked to, the basic substance of the conversation, and whether the conversation had any influence.
Disclose if there is anything personally or professionally that would not allow an impartial or unbiased decision.
Disclose if a site visit was done, location(s) of the visit, and what was seen.
2. ACTION ITEM: PUBLIC HEARING: CONDITIONAL USE PERMIT (CUP) – FILE CUP26-003.
This time has been set aside for the Hearing Examiner to hear comments from the public regarding a CUP request by
Gus Schultz. The subject property, known as 1800 River Park Way (PARCEL NO. RPPGW000100 AND RPCPP044853,
entails 59 acres (more or less) and is zoned of Industrial (I) with a Future Land Use designation of Industrial (I). The
request is to allow a potential data center to be built on these parcels. City use classifications do not include data
centers and city staff have determined that the proposed use requires a CUP application. (Quasi-Judicial Public
Hearing)

Planning & Development Services
HEARING EXAMINER
HEARING: MAY 14, 2026
STAFF REPORT
APPLICANT:
OWNER:
REQUEST:
LEGAL DESCRIPTION:
GENERAL LOCATION:
STAFF:

Gus Schultz
Portneuf Capital, LLC
Conditional Use Permit for potential data center
RPPGW000100 and RPCPP044853
1800 River Park Way
Jennifer Flynn, Assistant Planner

FILE: CUP26-003

SUMMARY & CONDITIONS:
In consideration of the application, staff concludes that the proposed use is compliant with Pocatello City Code
Section 17.02.130.D. A full analysis is detailed within this staff report.
Staff recommend the following conditions that are outlined in code for this type of use:
1. All applicable standards of the City of Pocatello Municipal Code not herein listed and applicable shall
apply;
2. Any activity requiring a separate development or building permit shall comply with applicable
regulations;
3. The applicant shall coordinate with the applicable City Departments prior to the submittal of a building
permit to address any site improvements that may be required; and
4. Idaho Power’s impact analysis for power generation and construction be provided to the City once
complete.
OPTIONAL MOTIONS:
1. Approval of the Application: “Move to recommend approval of the Conditional Use Permit application
from Gus Schultz to authorize a l data center for RPPGW000100 and RPCPP044853, finding the application
meets the standards for approval under section 17.02.130.D of Pocatello City Code.
2. Denial of the Application: “Move to recommend denial of the Conditional Use Permit application from Gus
Schultz, finding the application does not meet the standards for approval under section 17.02.130.D of
Pocatello City Code (state reason for denial).
GENERAL BACKGROUND:
Request: Gus Schultz is requesting permission to develop land for a data center on the subject property, known
as 1800 River Park Way, entailing two parcels encompassing ~59 acres and is zoned Industrial (I) with a Future
Land Use Map designation of Industrial. The request is to allow a potential data center to be built on these
parcels. City use classifications do not include data centers and the Planning Director as well as the mayor have
determined that the proposed use requires a CUP in accordance with 17.01.160.C.
Per code 17.01.160: USE CLASSIFICATIONS:
A. Purpose: The purpose of this section is to classify uses into a limited number of use types on the basis of
common functional, product, or compatibility characteristics, thereby providing a basis for the regulation of
uses in accordance with criteria that are directly relevant to public health, safety, and general welfare.
911 N 7th Avenue
Pocatello, ID

Office: (208) 234-6184
www.pocatello.gov

Page 1 of 6

As noted in section C:
C. Unlisted Use; Authorization of Similar Use:
1. Purpose: It is not possible to contemplate all of the various uses that will be compatible within a zoning
district; therefore, unintentional omissions occur. The purpose of these provisions is to establish a procedure
for determining
whether certain specific uses would have been permitted in a zoning district had they been contemplated and
whether such unlisted uses are compatible with or similar to the listed uses.
2. Process: The director shall render an interpretation, as governed by section 17.02.180 of this title.
3. Approval Standards: Approval or denial of an unlisted use application by the director shall be based on
findings of whether:
a. The use is consistent with the intent and purpose of the applicable zoning district;
b. The use is similar to and of the same general type as the uses listed in the zoning district;
c. The use has similar impacts as the uses listed in the zoning district; and
d. The use has similar impacts on the community facilities as the uses listed in the zoning district.
Community facilities include, but are not limited to, streets, schools, libraries, hospitals, parks, police and fire
stations and water, sanitary sewer and storm drainage systems.
4. Other Provisions: The director shall not authorize an unlisted use in a zoning district if the use is
specifically listed in another zoning district as either a permitted use or a conditionally permitted use.
Physical Characteristics of the Site: 1800 River Park Way, entails two parcels encompassing ~59 acres and is
zoned Industrial (I) with a Future Land Use Map designation of Industrial.
Notification: Notice was posted on the subject property and published in the Idaho State Journal on April 28,
2026. All property owners within three hundred feet (300’) of the external boundaries of the subject property
have been provided notice of the public hearing in order that they may provide comment on the proposed
Conditional Use Permit. No written comments were received from the public prior to the publishing of this staff
report.
Hearing Examiner Authority to Grant: The Hearing Examiner may approve, approve with conditions, or deny
an application for a Conditional Use Permit. The decision may be appealed by the applicant or other affected
persons (according to the provisions of Idaho Code section 67-6521) to the City Council pursuant to the process
outlined in Pocatello City Code section 17.02.400: Appeals.
ATTACHMENTS:
A. Application Documents
CRITERIA FOR REVIEW: The Hearing Examiner shall review the facts and circumstances of each proposal in
terms of the standards listed in the table below:

Compliant
Yes No N/A

Table 1. Conditional Use Permit Review Criteria Analysis
REVIEW CRITERIA (17.02.130.D):
City Code and Staff Review
Code Section
Analysis
17.02.130.D1

☒

☐

☐

Staff Review

Is conditionally permitted within the subject land use district and
complies with all of the applicable provisions of this code unless
modified through the CUP process.
Yes, this land is zoned Industrial. According to 17.01.160.4.b.2: Heavy
industrial: Manufacturing, processing and assembling of semifinished or finished products from raw materials. A substantial
proportion of activities and storage may be undertaken outdoors

HE 5.14.2026 Meeting, File: CUP26-003

Page 2 of 6

Applicant
Response

17.02.130.D2

Staff Review
Applicant
Response
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with resulting noise, glare, vibration, and other potentially adverse
impacts. Examples include, but are not limited to, production or
processing of chemical, rubber, leather, clay, bone, plastic, stone or
glass materials or products; manufacturing and production of large
scale machinery; energy production facilities; concrete batching and
asphalt mixing; production of metals or metal products including
enameling and galvanizing; production of cars, trucks, recreational
vehicles, or mobile homes; feed manufacturing; and wood
processing.
Data centers are an unlisted use in the zoning ordinance. In
accordance with 17.01.160.C the Planning Director and the Mayor
have determined a CUP is required.
The proposed data center use complies with the applicable
provisions of Pocatello City Code through the framework
established in Section 17.01.160 for authorization of unlisted uses.
While “data center” is not explicitly identified as a permitted or
conditional use within the zoning ordinance, the proposed use meets
all required approval standards for similar uses.
Specifically, the proposed development is consistent with the intent
and purpose of the applicable zoning district, which is to
accommodate employment-generating, infrastructure-supported
commercial and industrial activities. The data center is functionally
similar to permitted uses such as warehouse, light industrial, and
utility-related facilities in that it operates within an enclosed
structure, has limited on-site staffing, and generates minimal
external impacts.
The operational characteristics- including low traffic generation,
controlled access, and reliance on existing utility infrastructure- are
consistent with or less intensive than those of permitted uses.
Additionally, the project’s infrastructure demands can be
adequately supported by existing and planned public facilities. As
such, the proposed use satisfies all criteria for approval as an
unlisted use under Section 17.01.160.
Is consistent with the goals and policies of the comprehensive plan
of the city.
Future Land Use designates the subject property to be industrial for
future use. Data centers are most similar to Heavy Industrial uses as
described in 17.01.160.
The proposed data center is consistent with the goals and policies of
the City of Pocatello Comprehensive Plan, particularly those related
to economic development, land use efficiency, and infrastructure
utilization.
The project represents a significant investment in technology
infrastructure and contributes to the diversification of the local
economic base by introducing a high-value, low-impact employment
use. Data centers are widely recognized as essential infrastructure
supporting modern commerce, communications, and digital
services.
The proposed location within an established commercial/industrial
area aligns with the Comprehensive Plan’s intent to concentrate

HE 5.14.2026 Meeting, File: CUP26-003

Page 3 of 6

17.02.130.D3

Staff Review
Applicant
Response
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17.02.130.D4

Staff Review

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Applicant
Response

employment-generating uses in appropriate districts where
infrastructure capacity exists. The project promotes efficient use of
land and utilities while minimizing conflicts with residential or
sensitive land uses.
Is compatible with existing and permitted land uses within the
general area.
This corridor is industrial and if a potential data center use is
approved, would be compatible with other industrial uses.
The proposed data center is compatible with existing and permitted
land uses within the surrounding area. The River Park Complex is
characterized by a mix of commercial, industrial, and serviceoriented uses, many of which involve similar building forms,
operational characteristics, and infrastructure needs.
The data center will operate entirely within an enclosed building,
with limited employee presence and minimal customer or public
access. Compared to many permitted uses in the area, such as retail,
distribution, or manufacturing, the data center generates
significantly less traffic, noise, and activity.
Because of its low-intensity operational profile and
industrial/commercial nature, the proposed use is consistent with
and compatible with surrounding land uses and will not introduce
conflicts within the area.
Could be adequately served by public facilities and services such
as thoroughfares, transportation facilities, police and fire
protection, drainage, refuse disposal, water/sewer and schools, to
ensure that the proposed use would not be detrimental to public
health, safety, and welfare.
Public and private utilities have been notified about this potential
development. Needed quantities of water and sewer disposal have
not been provided. Once design and calculations have been drafted,
this development would need to meet standards and conditions set
by Water and Sewer. Officials with the City’s Water Pollution
Control submitted the following: How much wastewater will be
discharged? A ballpark number in gallons. Will any pretreatment be
required? Will there be any chemicals being discharged? The City's
primary wastewater interceptor line runs alongside/through this
property. Full 24/7 access must be provided as well as direct access
to all of the manholes connected to the interceptor. The Fire
department commented that a secondary access will be required.
Applicant is working with Idaho Power and Intermountain Gas to
determine a plan to provide power. Up to 100 megawatts of power
will be needed to run the data center which will not be available
immediately. Idaho Power has commented that 100 megawatts is
comparable to the amount of power utilized by the entire city of
Pocatello in one year. In the interim, power will be supplemented by
gas turbines.
The proposed data center can be adequately served by existing
public facilities and services, including transportation infrastructure,
utilities, and emergency services.

HE 5.14.2026 Meeting, File: CUP26-003

Page 4 of 6

17.02.130.D5

Staff Review
Applicant
Response
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17.02.130.D6

Staff Review

☒

☐

☐

Applicant
Response

Traffic generation associated with the use is minimal, consisting
primarily of periodic employee access and occasional service or
maintenance visits. This is substantially lower than many permitted
commercial or industrial uses and will not place undue demand on
the surrounding roadway network.
The site is located within an area already served by necessary
infrastructure, including water, sewer, storm drainage, and
electrical systems. The project will be engineered to meet all
applicable utility and service requirements, ensuring reliable and
efficient operation.
Police and fire services can adequately serve the site, and the facility
will incorporate modern safety and security systems. Overall, the
proposed use will not overburden public facilities and will operate
within the capacity of existing infrastructure.
Would be harmonious in scale, mass, coverage, density, and
intensity with all adjacent permitted land uses.
Adjacent land uses are similar and fit within the industrial use
classification. Landscape buffers will be required per City
standards.
The proposed data center will be harmonious in scale, mass,
coverage, density, and intensity with adjacent permitted land uses.
The building design will be consistent with typical commercial and
industrial structures in the area, such as warehouses and similar
large-format buildings. While the structure may have a comparable
footprint, its operational intensity is significantly lower due to limited
staffing and reduced activity levels.
The project will incorporate appropriate site planning, setbacks, and
design considerations to ensure compatibility with neighboring
properties. Overall, the development will fit cohesively within the
existing built environment without creating visual or operational
conflicts.
Would not adversely affect the environment to a greater degree
than had a use permitted outright by the ordinance been
established.
Based on the limited information provided, environmental impacts
will be limited as technology advances. City will defer to utilities and
other agencies to address environmental impacts; some concerns
that will need to be fully addressed meeting local, state, and federal
standards are emissions, power demands, water utilization, and
wastewater discharge.
The proposed data center will be harmonious in scale, mass,
coverage, density, and intensity with adjacent permitted land uses.
The building design will be consistent with typical commercial and
industrial structures in the area, such as warehouses and similar
large-format buildings. While the structure may have a comparable
footprint, its operational intensity is significantly lower due to limited
staffing and reduced activity levels.
The project will incorporate appropriate site planning, setbacks, and
design considerations to ensure compatibility with neighboring
properties. Overall, the development will fit cohesively within the

HE 5.14.2026 Meeting, File: CUP26-003

Page 5 of 6

17.02.130.D7

Staff Review

Applicant
Response
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existing built environment without creating visual or operational
conflicts.
Would not be detrimental to the public interests, health, safety, or
welfare of the city in its proposed location, size, design, and
operating characteristics.
Impact to public interests is being considered. Based on
technological advances, water use will be minimized. The greatest
public impact appears to be power usage. Data to support these
claims shall be provided by applicant prior to permits being issued.
The proposed data center will not be detrimental to the public
interest, health, safety, or welfare in its proposed location, size,
design, or operating characteristics.
The facility represents a low-impact, secure, and professionally
managed use that contributes positively to the local economy while
placing minimal demands on public infrastructure. Its operational
characteristics- low traffic, limited noise, and controlled accessreduce the potential for adverse impacts on the surrounding
community.
Additionally, the project supports broader economic and
technological development goals by providing critical digital
infrastructure. The proposed use aligns with the City’s interest in
promoting responsible growth and sustainable land use patterns.

HE 5.14.2026 Meeting, File: CUP26-003

Page 6 of 6

922 N GILBERT RD, SUITE 103
MESA, AZ 85203
T 480.580.1116

PH
ILB

IN

RD

VICINITY MAP

HWY 30 W

HOKU WAY

PROJECT INFORMATION

100,000 SF
BUILDING
PARKING
PARKING

100,000 SF
BUILDING

OVERALL SITE
59.75 acres
100,000 SF
BUILDING

PARKING

LOT SIZE:

59.75 ACRES

LOT COVERAGE:

--

BUILDING COVERAGE:

--

REQUIRED BUILDING SETBACKS
STREET:
SIDE:
SIDE:
REAR:

-----

PROVIDED BUILDING SETBACKS
STREET:
SIDE (EAST):
SIDE (WEST):
REAR:

-----

BUILDING HEIGHT:

--

REQUIRED PARKING:

--

PARKING PROVIDED:

--

PHILBIN ROAD AND HOKU WAY
POCATELLO, IDAHO 83201

100,000 SF
BUILDING

(I) INDUSTRIAL

OWNER'S NAME

RETENTION

ZONING:

POCATELLO AI
DATA CENTER

100,000 SF
BUILDING

PHILBIN ROAD AND HOKU WAY
POCATELLO, IDAHO 83201

3/19/2026 3:10:40 PM - PLOT DATE

ADDRESS:

RPRPCPP044853

26009

APN:

RETENTION

PROJECT TEAM
ARCHITECT
EDIFICE
922 N GILBERT RD,
SUITE 103
MESA, AZ 85203
T 480.580.1116
CONTACT: DANE ASTLE

RETENTION
100,000 SF
BUILDING

100,000 SF
BUILDING

PARKING

RETENTION

# DESCRIPTION DATE

PROGRESS SET
03.19.2026

1

N

SITE PLAN
1" = 300'-0"

ARCHITECTURAL
SITE PLAN
0'

300'

600'

1200'

A011

AFFIDAVIT OF LEGAL INTEREST

1, Chad D. Hansen (on behalf of Portneuf Capital, LLC) reside at 225E. Lemon Street

- in the State of Florda, being first duly sworn upon Oath, depose and say: I

in the City of Lakeland

am the owner of record of the property described as:

1800 River Park Way

and I grant permission to: Gus Schultz/Lex Developments LLC, who resides at

in the City of

_ in the State of to submit the following application(s) and

represent the owner pertaining to the property (check all that apply):
Preliminary Plat

[| Variance

Final Plat

[VI Conditional Use Permit
| Zone Map Amendment

Short Plat
Planned Unit Development

I Comprehensive Plan Map Amendment

Annexation

| Other:

I agree to indemnify, defend and hold the City of Pocatello and its employees harmless from any claims to liability
resulting from any dispute as to the statements contained herein or as to the ownership of the property, which is the
subject of the application.

c

h

o

n

-, MANAGER

Property owner signature:
FLORIDA

STATE OF tdato

POLK
County of Bannoc

Dated this Mth day of

april

_ 2026, the property owner CHADHANSEN (MANAGeR)

SUBSCRIBED AND SWORN before me on this day and year the authorization and information above written.

VandaR. reipp
NOTARY PUBLIC FOR BALD FLORIDA
(seal)

Residing at:
YOLANDAR. HEIPP
MY COMMISSION # HH 569871

Lakeland FL

Commission Expires:

EXPIRES: August 2, 2028

Approved by Legal on 8.26.2024

Sources for IV West AI Data Center Project
City of Pocatello | Conditional Use Permit Meeting | April 202
All claims verified against primary 2025–2026 sourceV

Core 2026 Industry Benchmarks
• 2026 Data Center Knowledge Base (March 31, 2026) – JLL, Cushman & Wakefield, FERC, Enverus. Rack densities (50–140 kW AI), PUE targets
(1.05–1.10 liquid-cooled), water usage (3–5M gal/day evaporative vs. near-zero closed-loop).

Specific Company & Technology Examples (2025–2026)
• Oracle AI Data Centers (Feb 9, 2026) – Direct-to-chip closed-loop non-evaporative systems. Ongoing community water use effectively zero.
• Microsoft Azure – Sealed chip-level liquid cooling (2025 deployments). >125 million liters saved per facility annually; 80% WUE improvement; new builds
zero-water.
• ZutaCore HyperCool – Two-phase direct-to-chip achieving PUE 1.05–1.07 (OCP white paper, 2025–2026).

Pocatello Local Non-Potable Water Sources (Key Advantage)
• Pocatello Water Pollution Control Facility (WPCF) – Treats ~7.5 MGD average (design 12 MGD). High-quality treated effluent approved by Idaho DEQ
for non-potable industrial reuse, including cooling.
• J.R. Simplot Don Plant (Pocatello area) – Major phosphate facility. Active wastewater treatment, recovery, and reuse program under 2023 EPA
settlement. Large volumes available for beneficial industrial reuse.
• Regional Potato Processing Wastewater – Simplot’s Caldwell plant treats 2.3 MGD with MBR technology. Idaho National Laboratory (INL) research
supports potato wastewater treatment for industrial applications. Similar streams near Pocatello available.
• Idaho DEQ Reuse Guidelines + EPA Water Reuse Action Plan 2.0 (April 2026) – Prioritize reclaimed water for data center cooling.

Pocatello Climate & Free Cooling Data
• US Climate Data / NOAA – Pocatello, ID (1991–2020 normals). Oct–May free cooling feasibility (5,000–7,000+ hours/year via dry coolers). Industry
standard for cold-climate sites.

Additional Regulatory & Market Context
• FERC Large-Load Reports (2026) • 12+ state hybrid/dry cooling mandates • Hyperscaler RFPs (AWS, Microsoft, Google, Meta 2025–2026) • JLL/Cushman
2026 Benchmarks • World Economic Forum (Nov 2025) – up to 91% water / 50% energy reduction with liquid cooling • IBM/Cray historical records (1960s
liquid cooling in HPC).

AI Data Center
Pocatello, Idaho
Conditional Use Permit – Public Meeting Presentation

Modern AI Cooling

Water Stewardship

Regulatory Protection

Community Benefit

How it works
& why it's required

Reduced potable
water impact

How Pocatello &
the treatment plant
are protected

Jobs, tax base,
responsible growth

Prepared for City of Pocatello | 2026

The Challenge: Modern AI Chips Run Much Hotter Than Old Computers
Think of it like upgrading from a single light bulb to a stadium spotlight — the heat produced is in a completely different
league.
Traditional Data Center
10–20 kilowatts per rack
• Think: hair dryers running simultaneously
• Regular air conditioning handles it fine
• Like cooling a busy office building
• Standard fans and vents work well

Modern AI Data Center

5–10×
more

Source: JLL/Cushman & Wakefield 2026 AI Data Center Benchmarks; Network World March 2026

50–140+ kilowatts per rack
• Think: industrial furnaces in a small space
• Air conditioning physically cannot keep up
• Liquid cooling is now required — no choice
• Like cooling a jet engine, not a bedroom

Why Air Conditioning Alone Can't Handle Modern AI — 3 Simple Reasons
Extreme Heat — Like Fitting a Forge in Your Living Room

1

Modern AI chips produce 700–1,000+ watts each. One rack of 72 chips can reach 140,000 watts (140 kW). Blowing air over that heat
is like trying to cool a campfire with a fan — physically inadequate.

Performance Throttling — A $3M Computer Slows Itself Down

2

If AI chips overheat, they automatically slow down to protect themselves. This wastes the enormous investment in the hardware.
Liquid cooling keeps temperatures optimal so the equipment works as designed.

Energy Waste — Air Cooling Wastes 20–30% More Electricity

3

"PUE" (Power Usage Effectiveness) measures how efficiently a data center uses electricity. Air-cooled AI often wastes 50%+ in
overhead. Liquid cooling achieves 5–10% overhead — a major efficiency gain for the community grid.

Bottom line: Liquid cooling is not a luxury — it is an engineering requirement for modern AI infrastructure.

Energy Efficiency & Pocatello's Cold Climate Advantage
What Is PUE (Power Usage Effectiveness)? (Like MPG for
Data Centers)

Pocatello's Built-In Climate Advantage

PUE = 1.0 Perfect (impossible in practice)
PUE = 1.05–1.10 World-class (liquid AI cooling)
PUE = 1.2 Excellent
PUE = 1.5–1.6 Industry average (older facilities)
PUE = 2.0+ Poor — wastes more power than it uses for computing

Winter Outdoor Air Utilization (Oct – May):
Pocatello's cold winters allow outdoor air to assist in cooling the
data center for ~5,000–7,000 hours per year, significantly reducing
the need for electricity-powered mechanical cooling. December
through February provides near-continuous natural cooling assist.
What this means: Lower electricity bills, less strain on the local
power grid, and reduced environmental impact.

PUE (Power Usage Effectiveness) Comparison — Lower Is Better

1.08

This Project
(Liquid AI)

1.20

Excellent
Facility

1.55

Industry
Average

2.00

Old Air-Cooled
Facility

Note: A PUE of 1.08 represents the project goal based on the planned liquid cooling design. Actual PUE will vary depending on final system configuration, load levels, and operating conditions.
This figure is a target estimate, not a performance guarantee.
Source: Industry PUE benchmarks (Network World 2026, Hanwha Data Centers 2025)

Water Use: What Changed and What It Means for Pocatello
OLD Method: Evaporative Cooling

NEW Method: Closed-Loop Liquid Cooling

3–5 million gallons per day
(peaks of 8 million on hot days)

Near-zero ongoing potable water use

How it works: Like a swamp cooler — water evaporates to
remove heat, and that water is gone forever.
Problem: Massive, continuous drain on the local water
supply. Risky in drought conditions.

→
80–
95%
Redu
ction

How it works: Like the coolant in your car's engine — the
same liquid circulates continuously and is never consumed.
Water goes in once at construction; that's it. The system is
sealed and self-contained.
Key advantage: Because no water evaporates, the facility's
ongoing potable water demand for cooling is dramatically
reduced compared to traditional methods.

Historical context: Closed-loop liquid cooling has been used safely in high-performance computing since the 1960s (IBM mainframes, Cray supercomputers). Mass
adoption by Amazon, Microsoft, Google, and Meta accelerated from 2022 onward as AI workloads required it.

Source: Oracle Feb 2026; Microsoft Dec 2024; IBM/Cray historical records

This Is the 2026 Industry Standard — Not Experimental Technology
The world's largest technology companies have already adopted exactly this approach. Pocatello would be joining proven, responsible
infrastructure.
Oracle

Zero Ongoing Potable Water
Oracle published in February 2026 that its new AI data centers — including facilities in New Mexico, Michigan, Texas, and Wisconsin — deploy closedloop, non-evaporative cooling. Once filled at construction, the system circulates indefinitely. Ongoing community water use for cooling is effectively zero.

Microsoft

125 Million Liters Saved Per Facility Per Year
Microsoft's December 2024 announcement confirmed that all new data center designs from August 2024 use closed-loop liquid cooling with zero water
evaporation. Pilot facilities launching in Phoenix, AZ and Mt. Pleasant, WI in 2026. Water savings: 125M+ liters/facility/year versus prior designs.

EPA Water Reuse Action Plan 2.0 (April 2026)

Federal Government Prioritizes This Approach
The U.S. Environmental Protection Agency's WRAP 2.0 specifically identifies reclaimed (treated wastewater) water for data center cooling as a priority
use. Pocatello's WPCF effluent reuse aligns directly with this federal framework.

Next, we'll look at exactly how these companies handle any wastewater from their systems — and how this technology compares to other industries
already operating under the same rules.
Sources: Oracle (Feb 2026, oracle.com/news); Microsoft (Dec 2024, microsoft.com/en-us/microsoft-cloud/blog); EPA WRAP 2.0 (April 2026)

How the World's Largest Tech Companies Handle Closed-Loop Wastewater
These are not experimental approaches — they are the documented, operating practices of companies already running this technology at
scale.
Oracle

Oracle, Feb 2026 (oracle.com/news)

One-Time Fill — Zero Ongoing Discharge

Oracle's AI data centers are filled with coolant once during construction. The sealed loop circulates indefinitely. There is no ongoing wastewater output during normal
operation — the water never leaves the system.

Microsoft

Microsoft Local (local.microsoft.com), 2026

Glycol Hauled by Licensed Contractor — Other Water Returned to Utility

Where propylene glycol is used, Microsoft collects and hauls it to a licensed disposal facility when removed. All other cooling water is returned to the local utility for
treatment identical to household wastewater. Reclaimed water and rainwater are used as input sources where available.

Amazon Web Services (AWS)

Florida Water & Pollution Control Operators Assoc., citing AWS 2023

Treated Municipal Wastewater In — Returned to Treatment Plant After Use

AWS in Virginia cools data centers with treated municipal wastewater instead of potable (drinking) water. After use, that water goes back to the treatment plant to be
cleaned and reused again — a fully circular loop. AWS plans to expand this to 120+ facilities by 2030, saving an estimated 530 million gallons of fresh water per year.

Google

ProChem Water, Jan 2026

Recycled Municipal Wastewater — Purpose-Built Reuse Infrastructure

Google's data center in Douglas County, Georgia uses recycled municipal wastewater for all cooling. New Google campuses are now designed from day one with water reuse
infrastructure built in.

Microsoft / City of Quincy, WA

EPA-Documented Closed-Loop Brine Management — 138 Million Gallons Saved Per Year

U.S. EPA Water Reuse Case Study (epa.gov/waterreuse), July 2025

The most detailed public case study available. Microsoft and the City of Quincy built a joint industrial wastewater treatment system. Mineral-rich brine is concentrated in
lined evaporation ponds and solidified — nothing discharges to the city's sewer or waterways during operation. Permitted by the Washington State Dept. of Ecology.

This Technology Is Not New — It's Used Across Dozens of Industries
The same closed-loop chemicals, the same disposal methods, and the same federal pretreatment rules have governed these industries for
decades.
Hospitals & Healthcare Facilities

Universities, Arenas & Large Campuses

Same chemicals: Propylene glycol (chosen specifically because it is safer around
potable water systems than ethylene glycol), nitrite corrosion inhibitors, biocides
Disposal: Glycol collected by licensed reclamation services for reuse or certified
disposal. Water-only loops discharged to sewer after lab testing under pretreatment
permits.

Same chemicals: Nitrite, molybdate, glycol — identical formulation to data center
closed loops — used in chilled water and hot water HVAC systems
Disposal: Industrial User Permits with the local POTW (wastewater treatment plant).
Lab testing required before any sewer discharge. Glycol hauled by licensed
contractor.

Pharmaceutical Manufacturing Plants

Food & Beverage Processing Facilities

Same chemicals: Same corrosion inhibitors, pH buffers, and biocides used in process
cooling loops throughout production facilities
Disposal: Full federal pretreatment program (Clean Water Act). On-site pretreatment or licensed hauler. Same Industrial User Permit framework as this data
center would operate under.

Same chemicals: Closed-loop cooling systems with the same
nitrite/molybdate/glycol chemical profile used to cool process equipment
Disposal: On-site pretreatment required before sewer or land discharge. Subject to
the same sewer surcharge and pretreatment rules under the Clean Water Act.

Iron, Steel & Heavy Manufacturing

Commercial HVAC (Office Buildings, Hotels, Convention Centers)

Same chemicals: Large-scale cooling water systems with corrosion inhibitors and
Same chemicals: Nitrite, molybdate, glycol — standard industry formulations used in
biocides — the original industrial use case for these chemicals, dating to the midevery large commercial building in cold climates, including all across Southeast Idaho
1900s
Disposal: Water-only loops discharged to sanitary sewer after lab testing. GlycolDisposal: Pretreatment agreements with municipal treatment plants. On-site
containing water collected and hauled by licensed waste contractor. Identical to the
treatment trains for high-concentration streams. The federal pretreatment program
data center protocol.
was
designed
for
these
facilities
first.
Sources: ChemREADY Water Treatment 2023; Metro Group Inc. Glycol Guidelines; HOH Water Technology 2026; Valicor Environmental 2025; VLS Environmental 2022; PMC Industrial Wastewater Review 2024; U of

The Economic Case: What a 200 MW AI Data Center Means for Pocatello
Construction Investment

What Stays in Pocatello

Total shell & core investment: ~$2.26 billion

Shell & site work (local scope): ~$472M (20.9% of total)

At $11.3M per MW — JLL 2026 Global Data Center Outlook

Foundations, concrete, structural steel, paving, site work

Peak construction workers: 140–400 local tradespeople

Est. locally sourced materials: ~$94M

0.7–2.0 workers per MW during 18–36 month build phase

Approx. 20% of shell scope: concrete, aggregate, gravel, paving (Red Hills Strategies / Consumer
Energy Alliance, 2025)

Construction wages: 30%+ above standard rates

Local install labor (MEP): ~$822M

Electricians on data center sites earning $120,000–$150,000 (ConstructConnect 2025)

Note: Technology fit-out (servers, racks) is additional investment beyond shell &
core

Even nationally-sourced equipment requires local electricians, plumbers, and HVAC tradespeople
for installation

Local subcontract opportunities: Civil, concrete, electrical install, site work,
security, ongoing maintenance

Property Taxes — 100% Stay Local

Ongoing Operations

Bannock County combined levy rate: ~1.2% of assessed value

Permanent local jobs: ~150–300+ (scales with facility size)

Covers all 5 local taxing districts (Satterfield Realty / Bannock County, 2025)

U.S. Chamber of Commerce Technology Engagement Center benchmark

Tax split (approximate): School Dist. #25 ~30% · City of Pocatello ~26% ·
Bannock County ~26% · Roads & Ambulance ~18%

Annual local wages: $7.8M+ annually

Zero goes to state or federal: All property taxes stay in Bannock County

Annual local economic activity: $32.5M+ per year

Idaho State Tax Commission: all property tax is spent by local governments

U.S. Chamber of Commerce / ConstructConnect

Benchmark — Loudoun County, VA: $0.04 in city services per $1 of data center
tax revenue vs. $0.25 for traditional businesses

Ongoing contracts: Maintenance, security, landscaping, utilities — available to
local firms long-term

Wye Economic Development Council, March 2025

Operations, maintenance, security, facilities management

All figures are estimates based on current industry benchmarks and available data. Actual construction investment, job numbers, wages, tax revenue, and local spend will vary based on final project scope,

Complete Summary: What the City and Public Can Count On
✓

Liquid cooling is an engineering requirement — not a preference. Modern AI racks at 50–140+ kilowatts (kW) cannot be air-cooled.

✓

Oracle, Microsoft, AWS, and Google all operate closed-loop systems with verified wastewater protocols — documented and publicly confirmed.

✓

Dozens of industries — hospitals, pharmaceutical plants, food processors, steel mills, commercial buildings — have used these same cooling
chemicals and disposal methods for decades under the same federal rules.

✓

The federal pretreatment program (Clean Water Act) was specifically designed to handle exactly this type of industrial cooling system and has
done so successfully for decades.

✓

The economic figures in this presentation — including construction investment, local job numbers, wages, and tax revenue projections — are
estimates based on current industry benchmarks. Actual numbers will vary based on final project scope, contractor selections, market
conditions, and Bannock County Assessor valuations. These figures are not a guarantee.

✓

Pocatello's cold winters are estimated to allow outdoor air to assist in cooling for approximately 5,000–7,000 hours per year, potentially reducing
the need for mechanical cooling. These figures are estimates based on current climate data and are not a guarantee of performance.

Sources: Pocatello WPCF (pocatello.gov) · Oracle Feb 2026 · Microsoft 2026 · AWS 2023 · Google 2026 · EPA Water Reuse Case Study Jul 2025 · 40 CFR Part 403 · Idaho DEQ · KETOS 2025 · U of
Michigan EHS Jun 2023