Data centers in Montana

📜 State laws

Right to Compute Act limits what governments can restrict (SB 212, signed 2025) · April 16, 2025
SB 212 created the 'Right to Compute Act' (Montana Code 2-10-201 to 2-10-207). It says any government action that limits owning or using computers and other 'computational resources' for lawful purposes must be 'demonstrably necessary and narrowly tailored' to a 'compelling government interest'. The law lists stopping or preventing 'common law nuisances created by physical datacenter infrastructure' as one such interest. Governor Gianforte signed it April 16, 2025. Yellowstone County's attorney and the Montana Association of Counties say it makes it hard for counties to pause or restrict data centers (for example over noise); others disagree. No court has tested it yet. Source

Data center property tax class updated to cover on-site power (HB 424, signed 2025) · May 13, 2025
HB 424 changed 'class seventeen' property, the special low property tax class for qualified data centers. It added cooling, substations, backup generators, batteries and new on-site power plants (built after May 13, 2025, and used at least 80% by the data center) to what gets the low rate. Governor Gianforte signed it May 13, 2025. Source

Draft bill: PSC must protect other customers from data center costs (for 2027) · Sept 9, 2026
On Sept. 9, 2026, the Legislature's Energy and Technology Interim Committee voted unanimously to move forward a draft bill for the 2027 session. It covers new utility customers using 5 megawatts or more. The Public Service Commission would have to make sure new service does not harm other customers, create a separate customer class for these large loads, block cost shifting to other customers, and require financial guarantees in case the big customer shuts down. The chair, Sen. Daniel Zolnikov, said it still needs work. NorthWestern Energy said some of the language is not realistic. It is a draft, not a law. The 2027 session starts in January. Source

'Montana Data Center Development Act' (HB 877) failed in 2025 · March 31, 2025
HB 877 would have created a 'Montana data center development act'. It was tabled in the House Energy committee on March 31, 2025 and died. Source

Data center and crypto mining power-use rules (HB 263) failed in 2025 · Feb 3, 2025
HB 263 would have revised rate rules for crypto mining and data centers. It was tabled in committee in February 2025 and went no further. Source

Change to data center property tax class (SB 540) failed in 2025 · May 23, 2025
SB 540 would have revised the taxation of class 17 (data center) property. It failed in the Senate on May 23, 2025. Source

💡 Who pays for the power

State law: big new customers (5 MW+) must not hurt other customers · Sept 3, 2025
Under Montana Code 69-8-201, a new customer using 5 megawatts (5,000 kilowatts) or more on average each month cannot just buy power from the utility. The utility must serve it only if the customer shows that serving it 'will not adversely impact the public utility's other customers over the long term', as decided by the Public Service Commission. Otherwise such customers buy power from other suppliers. On Sept. 3, 2025, the PSC rejected NorthWestern Energy's view that it did not need the commission's approval to serve big new loads. Source

NorthWestern's 'Large New Load Tariff' (PSC docket 2026.04.023, pending) · March 31, 2026
NorthWestern Energy asked the PSC on March 31, 2026 to approve rules for new customers using 5 megawatts or more, such as data centers. Customers from 5 to 50 megawatts would sign a 5-year contract, and pay a penalty if they leave early; their contracts would not need individual PSC approval. Customers over 50 megawatts would sign 15-year contracts with a minimum usage level, and the PSC would have to approve each contract first. All would post collateral and pay minimum bills. NorthWestern says this keeps other customers from paying for plants and lines built for data centers. Critics, including the Montana Environmental Information Center, want more PSC control, public review below 50 megawatts, and a separate rate class for data centers. Nine groups asked to join the case, including the Montana Consumer Counsel and the state Department of Environmental Quality. No decision or hearing date found yet. Source

NorthWestern home power bills keep rising · July 1, 2026
NorthWestern Energy's data show the average home electric bill reaching $131 a month on July 1, 2026, up from $124.34 in May 2026 and $91.27 four years earlier. The July increase was a quarterly fuel and supply cost adjustment filed June 3, 2026. The PSC also paused a cost-sharing tool that used to give customers a 10% break when supply costs ran over. Source

PSC sends NorthWestern's 20-year power plan back, partly over data centers · Aug 18, 2026
On Aug. 18, 2026 the PSC voted 3-1 to return NorthWestern's 2026 long-term power plan for fixes. The commission's consultant said the plan names data centers as 'potentially significant' drivers of demand but is not transparent about how it counts them. The PSC cannot reject the plan but can ask for fixes. Source

💵 Tax breaks

Low property tax rate for big data centers ('class 17') · May 13, 2025
A 'qualified data center' pays property tax at 0.9% of market value (Montana Code 15-6-162). To qualify, a data center must be at least 300,000 square feet and cost at least $150 million (built after June 30, 2017), or add at least 25,000 square feet and invest at least $50 million within 48 months (built after Jan. 1, 2019). The low rate covers land, buildings, equipment, cooling, substations, backup generators and batteries. Since 2025 it can also cover a new on-site power plant if the data center uses at least 80% of its power, at this rate for 10 years. Montana has no general sales tax, so there is no sales tax break to give. Source

🤐 Secret deals and public records

Anyone can ask for public records · Oct 8, 2026
Montana's Constitution (Article II, Section 9) gives a right to see government documents. State law says 'every person' may examine and copy public information (Montana Code 2-6-1003);. Cities and counties must answer 'in a timely manner', either by making records available or by giving a time estimate and the fees (2-6-1006). State agencies must confirm your request within 5 business days. Agencies may charge fees, but they must document them. Source

Utility kept data center letters secret at the PSC · March 13, 2026
In December 2025 the Public Service Commission let NorthWestern Energy keep its letters of intent with three data center developers (Atlas Power, Sabey and Quantica) out of public view as trade secrets. In March 2026, Earthjustice, for a group of watchdog and citizen groups, asked the PSC to make them public. A PSC spokesperson said the commission applies the right-to-know rules and protects only real trade secrets. Redacted copies are public. Source

💧 Water

Water: DNRC water rights, and DEQ for public water systems · Oct 8, 2026
In Montana you need a water right permit from the Department of Natural Resources and Conservation (DNRC) before using new water (Montana Code 85-2-302). Small wells are exempt: up to 35 gallons a minute and 10 acre-feet a year outside a 'stream depletion zone', less inside one (85-2-306). Several wells drawing together over 10 acre-feet need a permit. New public water wells also go through the Department of Environmental Quality (DEQ). Example: in fall 2026, DEQ took public comment until Oct. 29 on a new public water well for the Quantica campus near Broadview (about 150,000 gallons a day during construction, then about 20,000 a day). Source

🌫️ Air and generators

Air: DEQ permits for generators and power plants · Oct 8, 2026
The Montana Department of Environmental Quality (DEQ) issues air permits. An owner must file an air permit application at least 180 days before building or installing equipment that may cause air pollution, such as backup diesel generators or a gas power plant (Montana Code 75-2-211). Big new power lines (over 69 kilovolts, with exceptions such as lines of 230 kilovolts or less and 10 miles or shorter) need a certificate under the Major Facility Siting Act, also run by DEQ (75-20-104). Source

🙋 How to have your say

Who decides a data center near you · Oct 8, 2026
Montana has no townships. Cities and towns zone land inside their limits (city or town council). Outside cities, the Board of County Commissioners decides. Some county land has no zoning, which leaves the county fewer tools. Butte-Silver Bow is a combined city-county. The Public Service Commission handles power service and rates, DNRC handles water rights, and DEQ handles air permits and big power lines. Source

Pauses (interim zoning) and their limits · Oct 8, 2026
Counties can adopt interim zoning for an 'emergency' to public health, safety or welfare after a public hearing. It lasts up to 1 year and can be extended once for 1 more year; the county must start a study within 30 working days (Montana Code 76-2-206). Missoula County used this for data centers in July 2026. Cities can pass an interim zoning ordinance after a hearing; it lasts 6 months and can be extended for 1 year at a time, up to two times, by a two-thirds vote (76-2-306). The Right to Compute Act may limit these tools for data centers; this has not been tested in court. Source

How county zoning is created or changed · Oct 8, 2026
To create a county zoning district, notice must be posted at least 45 days before the hearing and published twice in the newspaper. After a 'resolution of intention', property owners in the district have 30 days to send written comments. To amend county zoning, notice must be posted at least 15 days before the hearing (Montana Code 76-2-205). Go to the hearing or send written comments before the deadline. Source

Appeal deadlines: 30 days · Oct 8, 2026
If you are harmed by a decision of a county board of adjustment or the county commissioners on zoning, you can ask a district court to review it within 30 days after the decision is filed (Montana Code 76-2-227). For a city board of adjustment decision, the deadline is also 30 days (76-2-327). Source

Citizen ballot initiatives on data centers face legal limits · July 7, 2026
In 2026 residents in Yellowstone County and Butte-Silver Bow tried ballot initiatives to require a public vote on data centers. Counties went to court, citing the 2026 Montana Supreme Court case Treasure County v. Edlund, which struck down a county initiative on wind farms because it overrode the county's zoning powers. Check with a lawyer or the county attorney before starting one. Source

Speak up at the Public Service Commission · June 30, 2026
The PSC decides how NorthWestern serves data centers (docket 2026.04.023). Groups and agencies can ask to become formal parties ('intervenors'); nine did in this case. The Montana Consumer Counsel, a state office, represents utility customers in PSC cases. You can also contact your elected PSC commissioner. Source

🧾 Help with your bills

LIHEAP energy assistance and free weatherization · July 2026
Montana's Low Income Home Energy Assistance Program (LIHEAP) pays part of winter heating bills and can help with furnace emergencies. Apply Oct. 1 to April 30 online at apply.mt.gov, or in person or by mail at your local eligibility office. Weatherization (making your home use less energy) can be requested all year. Native American households on a reservation (other than Crow) should apply through their Tribal LIHEAP office. Help with the form for people over 60 or with a disability: 1-800-551-3191. Source

📞 Who to contact

Montana Public Service Commission (PSC) · Oct 8, 2026
Five elected commissioners who regulate NorthWestern Energy and other monopoly utilities, set rates, and decide whether big new power customers can be served without harming others. Large-load tariff case: docket 2026.04.023. Source

Montana Consumer Counsel · Oct 8, 2026
State agency that represents utility customers in PSC cases, including the data center tariff case. Source

Department of Environmental Quality (DEQ) · Oct 8, 2026
Air permits (generators, power plants), public water systems, Major Facility Siting Act for big power lines, and public comment notices. Its Energy Office joined the NorthWestern tariff case. Source

Department of Natural Resources and Conservation (DNRC) · Oct 8, 2026
Water right permits and changes; water right records and maps. Source

Department of Public Health and Human Services (DPHHS) · Oct 8, 2026
Runs LIHEAP energy assistance and weatherization. Source

Montana Legislature (Energy and Technology Interim Committee) · Sept 9, 2026
Studies data center power costs between sessions and drafted a large-load bill for 2027. The Legislature meets in odd-numbered years; the next session starts January 2027. Source