Missoula County accepts report in pursuit of data center regulations
Martin Kidston
(Missoula Current) Members of the public praised Missoula County for its temporary ban on data centers and urged it to extend its moratorium until new zoning is adopted to temper the industry's environmental and social impacts.
Commissioners on Thursday moved toward that action by accepting the findings of a report, which in summary found that data centers “have very real impacts” on health, safety and the environment.
Accepting the report positions the county for its next step, which may include another year-long moratorium while it crafts new zoning to lasso the industry and its impacts.
“There will be no gap,” said Commissioner Dave Strohmaier. “Either we have permanent zoning in place by the end of this moratorium period, or, in the more likely case and in a separate action from today, we'll extend the moratorium.”
The study conducted by Missoula County found that data centers can have a significant impact on health, safety and the environment, and the interim ban adopted by the county earlier this year was appropriate.
County officials released the study last month, roughly four months after adopting its initial moratorium. What happens next hasn't been determined, though Thursday's acceptance of the study sets the stage for another ban and potential zoning.
“We know we're not immune and insulated from what happens at the state level,” said Abby Huseth with Climate Smart Missoula. “Overall, we really support the report because it offers the most durable pathway to getting regulations on the books, which can protect our community for the long term.”
While the county is looking to take action, its choices may be partially limited by state law. The report cites a number of state policies, which enshrine a county's right to adopt zoning regulations to protect public health and safety.
But in 2025, the Legislature also adopted the Right To Compute Act, limiting what measures a local government can take to restrict data centers. Under that scenario, a permanent ban on data centers won't be likely.
“We've been advised by the county's legal council that the act likely makes an outright local ban untenable,” said Svein Newman, the county's climate action program manager. “The county itself cannot address all the identified impacts. The state likely has purview over air quality and water quality. They largely regulate discharge permits and limit the county's authority there.”
But the county may have room to adopt zoning to address other concerns like noise, backup power, water use and a data center's location. It may also set renewable energy standards, which it did two years ago by requiring data centers and cryptocurrency operations to offset their power with 100% newly created clean electricity.
The Legislature convenes in two months and the county, along with advocates of stricter regulations on data centers, will be watching to see what laws may or may not emerge.
“We already know there will be a lot of bills about data centers, from water impacts to local control and more,” said Newman. “The last I looked there were already 50 filed bill-draft requests related to data centers and that number seems to be growing rapidly.”
The study identified three types of data centers from large to small. It also identified 13 potential impacts including climate change, water quality and quantity, noise, thermal effects, land use, electronic waste, wildlife and light pollution, among others.
Some on Thursday questioned the will of state-level leadership to address such impacts. Others spoke over concerns around “military industrialism,” “computational centers for digital neural networks” and a “high-tech surveillance police state.”
Ben Catton of the Montana Environmental Information Center noted the Montana Public Service Commission's approval of the $15 billion merger between Northwestern Energy and Black Hills Corp. With that merger now set, he encouraged the county to follow the report's recommendations, which include engaging with both the PSC and the Legislature.
“We'd like to continue to engage in the development of regulations and we strongly support the extension of this moratorium,” said Catton. “We'd love to continue to see engagement at the PSC now that the merger has been approved. We know that's largely to attract data-center development. We might be more of a target than we already are.”
The county report recommends that it remain engaged with the PSC – an all Republican body whose interests were questioned on Thursday.
“The county should continue its involvement (with the PSC) to help require data centers in Montana to pay their own way, essentially to ensure electrical costs associated with data-center power and transmission are contained to those customers and not shifted onto other customers like residential ratepayers,” Newman said.