NorthWestern Energy Merger and Data Center Plans Under Scrutiny in Montana

NorthWestern Energy is seeking approval from the Montana Public Service Commission (PSC) for a merger with South Dakota utility Black Hills Energy, a deal executives have touted to investors as a strategy to "capture data center opportunities." Despite this, NorthWestern Energy has refused to provide the PSC with information regarding 14 proposed data center projects it mentioned earlier this year, prompting concerns about transparency. Anne Hedges, Executive Director of the Montana Environmental Information Center (MEIC), argues in a viewpoint article that Montanans risk subsidizing data centers and facing increased electricity rates and harm to water resources if the merger proceeds without full disclosure. She points out that the Montana Legislature has already provided "sweetheart property tax deals" to data centers and limited local control, while the governor is perceived as supportive of tech development. The proposed merger would create a "mega monopoly" called Bright Horizons Energy Corporation, serving eight states, with a majority of its board members from Black Hills Energy. Hedges suggests the new entity may prioritize data center goals over the interests of Montanans, who have already seen significant electricity rate increases. The MEIC has engaged with communities across Montana, finding widespread bipartisan concern, and is urging politicians to demand transparency from NorthWestern Energy. A PSC hearing is scheduled for May 12, with opportunities for public comment.