by Jeffrey Michael
Data centers have been one of the fastest-growing industries in the U.S. for many
years. Until recently, the phenomenon has mostly bypassed Montana. But in 2025, a
series of big new data centers have been announced, most recently headlined by a
massive 1 GW Quantica facility proposed to be constructed outside Billings – after
announcements of somewhat smaller data center projects near Butte and Great Falls
this winter.
There is a lot of concern in Montana about the potential environmental impacts and
higher electricity costs. Data center demand is driving electricity costs higher across the
country, some data centers are building their own generation facilities – and it is
emerging as a national economic and political issue that could gain prominence in the
years ahead.
Why the sudden interest in Montana? Some of it is due to unprecedented growth in the
industry – with data center being proposed across the country, it seems inevitable that
we will see them here.
While data centers do not create as many jobs in a square foot of industrial space as a
factory or warehouse – a typical large-scale data center does support a few hundred
above-average paying jobs. And while the Montana legislature created a new lower-
rate property tax class (17) for data centers nearly a decade ago, these facilities will still
create considerable property tax benefits for the communities that receive these
investments.
Despite these benefits, the environmental and ratepayer concerns are legitimate and
require serious consideration. I don’t have the information or time to do that now.
Montanans are right to be concerned about the impacts to this state, but it is also
important to keep the larger context in mind – the data centers and their energy cost
and demand impacts are coming whether they are sited in Montana or not.
