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Sandpoint council directs staff to draft ban on large AI data centers, asks for definitions

Sandpoint City Council · July 16, 2026
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Summary

Council voted to direct staff to develop code language to prohibit larger‑scale data centers — particularly AI datacenters — while preserving smaller, on‑premises IT operations; councilors emphasized the need for clear definitions and an administrative process to distinguish small servers from large‑scale facilities.

Councilwoman Pam Duquette moved, and the council approved by roll call, a motion directing staff to prepare code amendments to prohibit larger‑scale data centers in the city’s industrial zoning districts and to return with precise definitions and draft language.

"I would like to give staff direction to research whether or not and how we can eliminate that data center as an allowed use," Duquette said, urging a preemptive fix to a perceived zoning loophole. She told the council she had discussed the proposal with planning staff and the city attorney and described the code change as “rather easy to do” if council supported it.

Councilors debated scope. Some members framed the issue narrowly — to prohibit large, AI‑scale facilities that consume large amounts of power and water — while preserving small, on‑premises server rooms that serve local businesses and institutions. Mayor Jeremy Grama and other councilors said staff should prepare a definition scale so that a small IT firm would not be treated the same as a hyperscale data center.

Councilor Tremaine (Taine) argued that preemptive changes matter because the city must apply the code that exists when a developer submits a permit; changing the code now prevents unwanted by‑right development later. Several councilors asked staff for a timeline; staff estimated an administrative drafting and noticing process could take a few weeks to a few months to present to council once definitions are developed.

Next steps: Staff will draft definitions and proposed code text distinguishing small server operations from large/AI data centers and will return to council with proposed ordinance language and a recommended public notice and hearing schedule.