Groups sue to require public release of data center information

Montana's expanding data center industry is generating considerable debate, with critics expressing alarm over potential increases in residential electricity costs, substantial water usage, and environmental pollution. Nick Gevock, a Butte resident and spokesperson for the Sierra Club, contends that these projects exemplify a scenario where profits are privatized, and costs, such as rising utility rates, are borne by the public, offering limited community benefit beyond some jobs. The controversy has escalated into a prominent issue in the political landscape, notably during the race for Montana's Western District congressional seat. Democratic candidates debated the matter, with one advocating for federal authorization to allow Montana to regulate data centers at the state level. This proposed regulation would ensure facilities are responsible for their own power costs, thereby preventing the public from subsidizing their energy consumption. Adding to the dispute, several organizations, including Earthjustice, have initiated legal action. They are challenging a protective order issued by the Public Service Commission, which currently prevents public access to Northwestern Energy's letters of intent for providing electricity to three data centers. These data centers are reportedly located in the Billings and Butte areas. Critics argue that this lack of transparency—revealing only the entities' identities, expected long-term loads, and general locations—hampers effective engagement with regulators and legislators. According to a December 2024 filing, Northwestern Energy plans to supply up to 1400 megawatts of power to data centers by 2030, a figure nearly double the average daily energy consumption of retail customers. Earthjustice is pushing for a ruling from the Public Service Commission that would mandate the public disclosure of detailed information, including terms of service, precise locations, and service quantities for these data centers. Concurrently, the state of Montana, through Governor Greg Gianforte's Energy Task Force, is also convening meetings statewide to explore how to safeguard ratepayers and address environmental concerns such as air and water quality as these large energy loads come online.