Montana needs a data center moratorium

I submit that data centers present the biggest challenge Montana has faced since the federal government released the North Central Power Study in 1971. 

This study said Montana, with 25% of the minable coal in the United States, should build 21 coal fired electrical generating plants in this state. As one person said, it would make Montana “the boiler-room of the nation” and would consume one half of the water in the Yellowstone River. 

In its 1973 session, the state Legislature wisely considered a moratorium on coal mining until Montana could get its act together. Montana needed control of mining to guarantee that the land would be fully reclaimed, that water and air would not be left so polluted that more people would die, and that everything could be done in an orderly fashion.

After it initially failed 49-50, a final vote on the moratorium bill was postponed until more progress was made. Then much legislation was passed, including a very strong coal reclamation bill, a law that was essentially copied by Congress to set a high standard for the whole country. Only then was the moratorium bill set aside. 

We are now faced with another huge challenge. Out-of-state people want to build huge data centers in Montana. Just one data center is expected to use the same amount of electricity (one gigawatt) that Northwestern Energy needs to service the entire state. And Northwestern Energy currently has entered into negotiations with three separate groups interested in building a data center in Montana, with 11 more companies submitting a serious interest in doing so.

Just as in 1971 when Montana was faced with being the boiler-room of the nation, I submit we are simply not ready for this onslaught of data centers. If only half of these inquiries are approved, that is six times the electricity that Northwestern Energy now provides. 

Where will they get the electricity? How many fossil fuel power plants will be build? Will it take thousands of windmills at a thousand dollars each and/or millions of solar panels? Or will it take new and more efficient transmission lines at a cost of billions of dollars? 

The costs will be astronomical. Someone has to pay for this.

Then if three or more of these data centers become bankrupt in a few years (as is likely for cryptocurrency and bitcoin based data centers) who is going to pay the enormous unpaid costs of all this construction. 

You are right. Under current laws, it would likely be the ratepayers. Our electric bills could easily be increased by three to six times or more because of fata centers. Just look at other states that have already allowed data centers to be built. 

With all the attention on AI and similar issues, it is not likely that America can or should ban data centers altogether. But if we do not act now to implement some serious limits and restrictions, there could be a real disaster. 

Some other states have already passed moratoriums on data centers. Some candidates for public office in Montana have announced support for a moratorium. I applaud this, at least until, as in 1993, significant progress has been made for protecting the people of Montana. 

Thomas E. Towe is a Billings attorney. He served in the state House from 1971-1974 and another 16 years in the state Senate.