Data center visit reinforces support among some Butte commissioners, yet questions linger

Seven members of the Butte-Silver Bow Council of Commissioners, two city-county staffers, and three members of an Ad Hoc Data Center Impact Committee recently completed a fact-finding mission to a Sabey Data Center in Quincy, Washington. The trip was intended to provide context for their deliberations on a proposed $1 billion Sabey Data Centers facility in Butte-Silver Bow County, Montana. Several participants, including Commissioners Michele Shea, Russ O'Leary, and Josh O'Neill, and Butte-Silver Bow Chief of Staff Jim Kambich, reported that the visit generally reinforced their support for the project, noting the facility's quiet operation and the community benefits observed in Quincy. Despite the largely favorable impressions, some commissioners, like Russ O'Leary and Eric Mankins, emphasized that significant questions remain, particularly concerning Sabey's specific development plans for Butte, the estimation of tax revenues, and potential impacts on NorthWestern Energy's utility rates. O'Leary highlighted the need for a full picture of what to expect over the next decade before the Council takes a final vote on the development agreement. The article also touches on environmental concerns, with the Butte-Silver Bow Water Utility superintendent, Jim Keenan, stating that the proposed data center would utilize an adiabatic cooling system requiring approximately 16 million gallons of water annually only when temperatures exceed 80 degrees Fahrenheit, and that the Silver Lake system has ample capacity. Energy consumption remains a key concern, with NorthWestern Energy recently submitting a plan to the Montana Public Service Commission (PSC) for a "Large New Load Tariff" rule. This rule would place the onus for costs associated with new customers requiring over 5 megawatts, such as data centers, directly on those customers rather than existing ratepayers. The PSC's direction on these large power loads is critical for the commissioners' final decision. Opposition groups, including the Butte Watchdogs for Social and Environmental Justice, have called for a public forum to allow community input. Commissioners continue to evaluate the project's alignment with Butte's needs, infrastructure and workforce capacity, and long-term community impact. The extended deadline for Sabey to close on the land deal, now set for August 11, allows the company to finalize title work and energy supply issues.