Kalispell forum fleshes out the economics behind data centers
A forum in Kalispell, Montana, discussed the economic impacts of data centers, highlighting that only a small portion of construction capital stays local while significant tax revenue is generated post-construction. Proposed data center projects in Montana face widespread local opposition due to concerns about environmental impacts, water usage, noise pollution, and the substantial energy demands on public utilities.
At a midyear economic update in Kalispell, Montana, Jeffrey Michael, Director of the University of Montana’s Bureau of Business and Economic Research, presented a hypothetical scenario for a 500-megawatt data center in rural Montana. He estimated that while only 10% of the $20 billion capital for construction would go to local companies, the facility would generate approximately $33 million annually in taxes, significantly reducing residential property taxes in a district like Broadwater School District.
However, Michael noted that proposed data center projects in locations such as Broadview, Bonner, Great Falls, and Butte are encountering widespread local opposition. Residents and advocacy groups are raising concerns about potential environmental impacts, including high water consumption for cooling and noise pollution from backup generators.
Regarding energy, advocacy groups in Montana filed a complaint with the Montana Public Service Commission in November 2025, demanding clarity on how public utilities like NorthWestern Energy would meet the massive energy demands. They argue that the proposed Broadview data center alone would more than double NorthWestern Energy's daily supply needs, potentially burdening existing utility customers with the costs of transmission and generation upgrades.
Katie Pfennigs, Community Relations Manager for Flathead Electric Cooperative, indicated that Northwest Montana and the Flathead Valley are unlikely to host large data centers soon due to high property costs and increasingly constrained transmission systems, making very large new loads infeasible at this time.