City and county officials cautious on data center development

Missoula Mayor Andrea Davis and Commissioner Josh Slotnick have voiced significant concerns regarding the environmental and economic impacts of new data centers in Montana, emphasizing scrutiny on energy, water, and land use. Mayor Davis noted that Montana's regulatory capabilities are currently lagging behind the rapid expansion of AI technology and associated data center developments. Idaho-based Krambu's proposal to build a data center at the former Bonner mill site is a focal point of this discussion. The initial phase of the project, which would require approximately 1 megawatt of power, needs a special zoning exemption from Missoula County's land use board and commissioners. This is due to the proposed site's proximity to a residential area. Furthermore, the project must adhere to a county policy mandating that 100% of its electrical consumption be offset by newly generated green renewable energy. Commissioner Slotnick clarified that this policy specifically requires new renewable electricity, disallowing carbon offsets or reliance on existing hydro assets, as the energy demands could otherwise impede the county's climate objectives. Concurrently, Northwestern Energy has submitted an application to the Montana Public Service Commission to approve its terms for supplying power to the increasing number of data centers proposed statewide, and is also exploring a $15.4 billion merger with Black Hills to meet this rising energy demand, raising further questions about future power sources.