Montana Data Center Growth Could Significantly Increase Electricity Costs

Montana Data Center Growth Could Significantly Increase Electricity Costs

News ClipBillings Gazette·Billings, Yellowstone County, MT·5/3/2026

Former Montana State Senator Thomas E. Towe warns that data center expansion in Montana could drastically increase residents' electricity bills. He draws a parallel to historical challenges Montana faced with large-scale resource exploitation, emphasizing the need to protect the state's resources from out-of-state corporations. Towe recounts his legislative efforts in the 1970s to impose coal taxes and create a trust for future generations.

electricitywatermoratoriumgovernment
Gov: Montana State Senate
In an opinion piece for the Billings Gazette, former Montana State Senator Thomas E. Towe cautions Montana residents about the significant financial impact potential data center expansion could have on their electricity bills, suggesting increases of three to six times current rates. Towe, who served in the state legislature from 1971-1991, draws a historical parallel to the 1971 North Central Power Study, which proposed building 21 coal-fired electrical generating plants in Montana. He likens the potential data center impact to the "boiler-room of the nation" scenario, which would have consumed half of the Yellowstone River's water. Towe recounts his legislative efforts in the 1970s, including making a motion to postpone a Moratorium Bill in 1973 and sponsoring a bill in 1975 that imposed the nation's largest coal tax. He also supported a Constitutional amendment to dedicate half of the revenue to a future generations' trust. Towe's historical actions were aimed at preventing out-of-state corporations from exploiting Montana's resources without leaving lasting benefits for its people. He implies that similar vigilance is needed now regarding data center development to safeguard the state's resources and residents' financial well-being.