NorthWestern’s mega-monopoly merger is all about data centers

NorthWestern Energy is pursuing a merger with South Dakota's Black Hills Energy, a move executives have privately told investors is primarily to "capture data center opportunities" and address growing energy demand. Publicly, NorthWestern has denied this link and refused to provide information on 14 proposed data center projects to the Montana Public Service Commission (PSC), which is set to begin hearings on the merger on May 12. Anne Hedges, Executive Director of the Montana Environmental Information Center (MEIC), argues that this lack of transparency is alarming, warning that Montanans could face similar negative impacts—such as increased electricity rates and harm to water resources—experienced in other states due to unregulated data center development. She highlights that the Montana Legislature has already granted favorable property tax deals to data centers and limited local control, while the Governor, described as a "tech millionaire," is also seen as supportive of the industry. The proposed merger would create a new entity, Bright Horizons Energy Corporation, serving customers across eight states, with Black Hills Energy representatives forming a majority on the new board. Hedges expresses concern that this "mega monopoly" would prioritize data center goals over the interests of Montanans, who have already seen significant electric rate increases. MEIC has been actively engaging communities across the state, fostering bipartisan opposition to unregulated data centers and urging politicians to protect Montanans from subsidizing these developments.