The University of Montana’s Bureau of Business and Economic Research (BBER) presented a model for a proposed data center in rural Yellowstone County, projecting employment for about 500 temporary construction workers and 250 permanent positions. During a presentation in Helena, BBER highlighted the economic impact of this industry, which has faced difficulties breaking ground in some parts of Montana.
Data centers in Montana have sparked debate, notably a project in Bonner that stalled after losing property owner support. In Great Falls, proposals are under review while local coalitions push for voter approval on new facilities in Butte. Concerns include the impact on local water resources and utilities, with opponents questioning the economic benefits.
BBER estimates a $20 billion data center project would spend roughly $2 billion on Montana goods and labor, attributing $33 million in local property taxes from equipment as a benefit. However, most infrastructure would be manufactured outside the state. BBER Director Jeffrey Michael said, “All this stuff that is gonna get trucked in and placed in there, it’s not going to necessarily be built by Montanans, but it will be taxed by Montanans as business equipment and properties.”
Economic benefits like job creation are contested by Anne Hedges of the Montana Environmental Information Center, who argues that these projects could strain essential resources. Hedges, active in state discussions, advocates for policies safeguarding water supplies and utility ratepayers.
The BBER faced criticism for its relationship with NorthWestern Energy, a key energy supplier for data centers, though Michael asserted the company’s lack of influence on their analysis. Hedges called for more transparency in BBER’s methodologies, with Michael promising a comprehensive report by September.
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