Missoula County to consider temporary ban on new data centers
Martin Kidston
(Missoula Current) Saying it's policies regarding cryptocurrency mining and data centers are outdated, Missoula County on Monday stated its intent to enact interim zoning to pause any future projects until it can study their impacts and any potential regulations needed to mitigate them.
Doing so requires one public hearing, which is now set for July 9.
The potential zoning comes as the debate around data centers and their intense energy use intensifies. Under current county zoning, data centers and crypto operations must develop or purchase enough new renewable energy to offset their electrical consumption.
Under the standing ordinance, the operation must also dispose of all electronic waste an at e-waste recycling center licensed by the Montana Department of Environmental Quality.
However, Karen Hughes said the current zoning may not be broad enough for data centers and the growth expected around artificial intelligence.
“The zoning we have was developed for cryptocurrency mining operations. It was really focused on energy and e-waste,” said Hughes. “There's all these other potential impacts that communities are seeing across the nation in their evaluation of data centers. They have pretty extensive regulations in a lot of those communities. This step-back is to take a closer look at those and make sure the regulations we have appropriately address those.”
The county cited a public emergency in 2019 when it placed interim regulations on new or expanded cryptocurrency operations. It expanded those temporary regulations again in 2020 before adopting permanent zoning in 2021.
Employees with Hyperblock – the crypto mining operation in Bonner that prompted the zoning change – blamed the county's regulations on the company's eventual bankruptcy.
Currently the county has no crypto mining operations or data centers though one firm, Krambu, has already begun the process in seeking county approval for a 7-megawatt facility in Bonner. Hughes said Krambu would not be impacted by the interim ordinance if the county were to adopt it next month.
“Krambu's 7 megawatts would be able to continue under current zoning,” Hughes said. “They would continue their process as a special exception. But any expansion would fall into this temporary pause.”
Already, public opposition to Krambu's operation continues to grow. More than 100 people filled a Bonner business earlier this month to voice opposition to the data center. If the county does approve Krambu's current application, the business would still need to meet county regulations on new renewable energy and e-waste.
But it would not be subject to any changes to county zoning. However, other data centers that could seek approval would be subject to the temporary ban and any regulatory changes that may come from the county's research.
“The proposal is to put a temporary pause on new data centers until we have the chance to study the issue and figure out appropriate regulations to address the potential impacts of data centers,” said Hughes.
Interim zoning is authorized for one year and can be extended for a second year. It can also go into effect immediately. No other data center applications are currently in the works, the county said.
Hughes said any county policy would adhere to existing state law. She said she wasn't aware of any state regulations that would limit the county's authority to stiffen data center regulations.
“We've not identified that yet,” she said. “But we continue to make sure we're following all requirements.”
The county has created a special page to receive public comment on the issue ahead of the July 9 hearing.