Counties take different approaches to data center regulation

Across Montana, local governments and citizens are grappling with the oversight of large-scale data center projects, leading to diverse regulatory approaches.

In Yellowstone County, the County Commission unanimously directed the county attorney to seek a legal judgment on the legality of a citizen initiative. This initiative aims to require a two-thirds voter approval for future data center construction or expansion, spearheaded by Broadview resident Kassi Solberg. Deputy County Attorney Steve Williams expressed concerns that the initiative might conflict with the state constitution, citing a relevant Montana Supreme Court case, Treasure County v. Edlund, which ruled a similar citizen initiative regulating wind farms unconstitutional. Solberg criticized the commission's action as "Big Government at its most obvious," arguing that voters, not bureaucrats, should decide on data center development, especially given Quantica Infrastructure's plans for a large data center campus near Broadview.

Conversely, the Missoula County Commissioners approved interim zoning this week, effectively enacting a one-year moratorium on data center construction or expansion. This pause allows county planners to update regulations to mitigate potential impacts related to noise, vibration, heat, air quality, water quantity and quality, and energy use. The decision was prompted by the withdrawal of a proposed AI data center project by Idaho-based Krambu at the Bonner Mill Industrial Park. Property owner Mike Heisey withdrew his signature from the application after public feedback. Missoula County Planning Director Karen Hughes highlighted that current regulations inadequately address the energy and water consumption issues posed by these facilities, noting that providing backup power for a 37-megawatt data center could equal all Missoula households' energy needs.