Experts discuss impacts, concerns related to data centers

Nearly 180 residents in Central Montana attended a panel discussion in Lewistown organized by the Central Montana Resource Council, addressing the potential impacts of data center development on the region. The forum featured technology expert Mike McDearmon, Montana Environmental Information Center Executive Director Anne Hedges, and Upper Missouri Waterkeeper Executive Director Guy Alsentzer. Panelists highlighted that modern data centers, driven by artificial intelligence, are vastly larger than previous versions, requiring immense capital, up to 5 gigawatts of power, and vast amounts of water for cooling. McDearmon warned of the economic volatility, suggesting communities could be left with abandoned sites if data center businesses fail, and urged for deals that are 'net positive' for communities. Hedges discussed rising electricity costs, noting a Harvard study that attributed 70% of 2025's projected electric cost increases to data center demands. She revealed that NorthWestern Energy is considering providing power to 11 new data centers, though their location within Montana, South Dakota, or Nebraska is unknown. Hedges stated that her group, MEIC, has sued NorthWestern Energy to demand transparency regarding its contracts with data centers, citing the Montana Constitution's requirement for transparency. Alsentzer raised concerns about data centers' industrial-scale water use, particularly in a state where 80% of residents rely on aquifers for drinking water. He emphasized that rural areas, lacking specific regulations for this scale of water use, are attractive to developers. Alsentzer recommended that Montana treat data centers as industrial users, requiring them to disclose coolants and additives and mandating local regulations with a 'Best Available Technology' standard. He urged a 'pause' on approvals until state and local 'sideboards' are established. Attendees were encouraged to sign petitions for the Fergus County Commissioners, asking for the enactment of local data center regulations before any projects are proposed in the area. Over 100 signatures were collected at the forum.