The Pocatello City Council voted to affirm the Hearing Examiner's decision to deny Lex Developments a Conditional Use Permit (CUP) for the proposed AI data center. The appeal was drafted by Lex Development and will be reviewed by the mayor and city council on July 16. The company argues that the City didn't follow proper procedures for the land, which they believe falls under "Unlisted Use; Authorization of Similar Use" rather than the requirement of a CUP due to similarities in facilities. The developer also argues that their data center would use less power, water, and resources than the former Hoku plant, making it inconsistent by city code to require a permit for the site. The council could either affirm, modify, or reverse the Hearing examiner's decision from May 19, 2026.