Local Missoula AI company files lawsuit against the City of Missoula for data center zoning regulations
Missoula-based CubCloud AI has sued the City of Missoula over a zoning amendment that effectively prohibits most data centers within city limits. The company, supported by the Frontier Institute, argues the restrictions violate Montana's Right to Compute Act, while the city plans to defend the amendment in court.
The Missoula City Council recently approved zoning changes that sharply restrict data centers within city limits, effectively barring most new facilities while allowing some small-scale uses. CubCloud AI, a local artificial intelligence company that operates a small data center in its building, says the rules would prevent future expansion even though its current operations comply.
With assistance from the Frontier Institute and its Big Sky Legal Project, CubCloud AI filed a lawsuit in Missoula District Court challenging the amendment. Frontier Institute President and CEO Kendall Cotton argues the restrictions violate Montana's 2025 Right to Compute Act, while the City of Missoula says the law does not grant data center companies an unrestricted right to locate anywhere and intends to vigorously defend the council's decision.