With eyes on Legislature, city adopts new data center definition

Martin Kidston

(Missoula Current) The City of Missoula will be watching the 2027 Legislature to see what action it takes to address data centers, from their electrical use to their environmental impacts.

But that's still months away and on Monday, members of the City Council closed a lingering loophole that, if not addressed, would have allowed a data center to slip in before the city has time to consider wider, long-term proposals regulating such activities.

“Right now, a certain scale of data center is allowed broadly across the city,” said planner Cassie Trippard. “This amendment closes that loophole so they are not allowed across the city without a public hearing.”

Prior to Monday, the city's definition of a data center identified the use based upon the amount of equipment that was present. Under that definition, a facility with less than 50% of its floor space dedicated to computers, servers and data storage would not have been considered a data center.

But the change shifts that focus to what the facility is actually used for. That includes a facility that houses computer systems, servers, appliances and/or telecommunications equipment for remote storage, processing and distribution of data.

“With the new definition, the traditional data center would not be allowed because it processes data for third parties for off-site use and not part of the enterprise,” said City Attorney Ryan Sudbury. “This is language other jurisdictions have used.”

Missoula County in July adopted a temporary moratorium on data centers and in August, it launched a study on data center impacts and any regulations needed to address them.

Several members of the public on Monday urged the city to consider a similar ban pending the outcome of the county's study. Council member Kristen Jordan initially pushed for such action by opposing the ordinance change, saying a data center could still be approved by City Council.

“I'd like to put a temporary moratorium on any potential data centers until we do a study alongside the county. I'd like to make sure we don't have any new data center proposals while we think about how to handle this, just like the county,” she said.

But city staff cautioned against such action, saying that pulling the ordinance change would have the opposite effect by allowing a data center under the city's old definition.

Sudbury said the new ordinance effectively blocks a data center and gives the city time to measure the outcome of the county's study and what actions the Legislature takes next year.

“Pulling this isn't what you're looking for. We need a new definition right now because these things can be built today without this definition,” Sudbury said.

He added that future regulations could be developed around a data center's electrical load, cooling needs and other targeted rules.

“As this industry develops, people are getting better at targeting and mitigating the impacts that are unwanted,” he said.