Montana Democrats Propose Data Center Moratorium Amid Energy, Water Concerns

The Montana Democratic Party is pushing for a two-year moratorium on data center projects statewide, a proposal that emerged from its June 2 platform convention in Billings, spearheaded by Yellowstone County Democrats. The party's primary concerns revolve around the escalating electricity demands of these facilities, which could lead to higher power bills, and their significant water consumption for cooling. Former Democratic Montana Governor Brian Schweitzer has actively taken up the cause, organizing a seminar with Montana Conservation Voters to highlight the issue, asserting that public approval for data centers in Montana is notably low.

This political push comes as interest in large-scale data centers has surged in Montana, particularly driven by artificial intelligence demands. One notable project, proposed by Quantica east of Broadview, is projected to have electricity needs potentially exceeding NorthWestern Energy's entire Montana customer base. The Montana Republican Party also addressed data centers in its June platform amendments, advocating for local government involvement in decision-making and emphasizing the need to respect Western water and energy resources.

The debate highlights a division within political parties, with some, like former U.S. Sen. Jon Tester, acknowledging the challenges but cautioning against outright rejection, suggesting mitigation strategies instead. Building trades unions, however, anticipate the job creation that data center construction could bring. The discussion around data centers is set against a backdrop of internal party dynamics within the Montana Republican Party, which recently amended its bylaws to tighten membership rules.