Kootenai County approves conditional rules for data centers, directs staff to draft outright ban

Kootenai County commissioners on Sept. 25 approved a conditional-use ordinance to govern data center development in the unincorporated county, adding a condition that facilities must not be located over the county aquifer and directing staff to draft an ordinance to consider an outright ban.

The move came after a four-hour public hearing that included more than two dozen citizens who opposed data centers citing water and power usage, noise, air quality and privacy concerns. Director of Community Development David Callahan told the board the county currently lacks specific requirements for data centers and said the conditional-use process ‘‘gives a very thorough vetting of proposals.’’

The ordinance enacted a conditional-use permit pathway so applications in affected zones would be reviewed against explicit criteria, referred to sister agencies for comment, and brought to public hearing before a decision. Commissioners voted 3-0 to approve ORA 25-0007 with the added condition that no permitted data center may be located over the aquifer, and they instructed staff to prepare a second ordinance that would propose an outright ban in unincorporated areas.

Why it matters: County staff and public speakers framed the question as a tradeoff between potential tax revenue and local impacts. Callahan provided a rough fiscal example saying ‘‘if a million square feet were here, that’s 2,000,000 a year in ad valorem taxes for the county’’ and suggested sister agencies could see roughly ‘‘another 7,000,000’’ in taxes. Opponents cited water and electricity demands, citing regional examples and academic concern about aquifer health.

What the ordinance does and does not do: The approved conditional-use approach does not permit immediate construction; it requires prospective developers to apply and meet listed criteria. The board explicitly added a site restriction forbidding placement ‘‘over the aquifer’’ as part of the permit conditions. Commissioners and staff said the conditional-use process provides community review and that a separate ban would require additional public notice and planning commission review prior to adoption.

Public testimony and issues raised: More than 20 residents testified, voicing similar concerns: - Water and aquifer stress: multiple speakers warned local groundwater resources are stressed and said data centers’ water use for cooling could worsen that stress. Tom Schafer cited conversations with an Idaho Water Resources Research Institute official who said recharge is not keeping pace with withdrawals. - Electricity demand and rates: speakers said large data centers can materially increase local power demand and could push rates higher for residents. - Jobs and land use: speakers disputed job estimates, noting most long-term jobs are limited and that large facilities can occupy land that might otherwise host many local employers. - Noise and air quality: diesel backup generators and continuous cooling equipment were flagged as public-health risks in case studies cited by commenters. - Privacy and surveillance: several speakers linked some data-center uses to large-scale data collection and surveillance, and urged a ban on ethical grounds.

Board discussion and next steps: Commissioners said the ordinance is an interim measure to avoid an automatic ‘‘shall-issue’’ building-permit outcome in industrial districts where, absent regulation, a developer could proceed without review. Several commissioners said they favor putting requirements in place immediately while staff and the board pursue a legally defensible ban if that is the board’s direction. Staff said no data-center applications were currently in the permitting queue.

Quotes: Director David Callahan: ‘‘The data center issue is a hot topic nationwide…we don’t have any current regulations for these things so if a data center came in…we would have to issue a building permit no questions asked.’’ Commissioner (Chair) Metari after the vote: ‘‘We can include in the motion to approve the ordinance and then provide direction to develop another ordinance that would provide for an outright ban in unincorporated county.’’

Clarifying details: The planning commission had reviewed the ordinance on Sept. 11 and returned a 5–1 recommendation with one commissioner asking for additional information on eight topics (water quality, noise and setbacks, power, traffic/construction impacts, economics and workforce, public safety, intergovernmental coordination and policy questions). Callahan told the board the county’s six-month moratorium on data centers ended in August and that reimposing a new moratorium is limited by state timing rules; staff estimated a separate ordinance to ban data centers could take roughly three months to prepare and process through required hearings.

What the decision means for residents: The conditional-use ordinance establishes review criteria and gives the county a formal path to deny or condition data-center applications in unincorporated industrial zones; it does not remove the possibility of future litigation. The board directed staff to draft a follow-on ordinance proposing an outright ban, and commissioners said they will pursue that option in the coming weeks.

Ending: The board approved the conditional-use ordinance 3–0 and adjourned at 11:11 a.m. The ban-drafting process will return to the board for future public hearings.