After years of relatively limited data-center growth, Montana is seeing proposals for new facilities as AI-driven investment ramps up demand for electricity and related infrastructure. The Associated Press reported that while Montana has been highlighted as a state with potential for data centers, only a handful of relatively small facilities have been built so far. Now, environmental watchdogs and residents in multiple cities say a lack of detailed public information—especially about water needs—could leave local communities exposed as projects move from planning into construction.
That wariness is amplified by the scale of planned power demand. The reporting cited preliminary agreements NorthWestern Energy, Montana’s largest utility, has signed with three companies over the past 14 months, which officials and experts say offer a window into the electricity such large data centers could require. But the same coverage said details about water usage remain hard to obtain, in part because developers have been “tight-lipped” about their proposals.
Aaron Wemhoff, a mechanical engineer who studies environmental impacts of data centers as part of a consortium focused on energy-efficient electronic systems, said the development pace is influenced by more than just corporate demand. He told Montana Free Press that data-center construction is increasingly occurring in rural areas where there is “less resistance,” and he attributed that to both a power-supply bottleneck and opposition from nearby residents wary of environmental impacts.
Wemhoff also described how the cooling methods used by data centers can shift the water problem across different parts of the system. He said evaporative cooling systems require more water but less electricity, while “closed loop” or “open-air” cooling systems typically use less water but are less efficient because they require more electricity. Wemhoff said the “true water footprint” includes water consumed on site as well as water consumed indirectly in producing the electricity the facility uses, adding that fossil-fuel generation can involve significant water consumption as well.
Anne Hedges, executive director of the Montana Environmental Information Center, said the organization has seen unusually strong public interest in the issue. Hedges told Montana Free Press that the level of engagement at educational events is unlike anything she has encountered in her 32 years with the nonprofit, which also acts as an environmental watchdog. She described events as drawing standing-room-only crowds and said the focus is on regulations meant to protect Montanans from what she framed as decisions driven by the wealthiest companies.
The reporting outlined three specific proposals that have been in circulation as of early February, including projects tied to “high-performance computing” and cryptocurrency mining. Those proposals have prompted discussion at local meetings, raised questions about the source of water for cooling and the duration of water use, and highlighted the difficulty residents face in obtaining clear diagrams and guarantees before approvals are finalized.
Quantica Infrastructure, a Texas-based company, is planning Big Sky Digital Infrastructure, a “high-performance computing” campus south of Broadview. According to the reporting, Quantica has secured a 5,000-acre property for the project and proposes a power requirement that could be continuous supply of up to 1 gigawatt. Quantica said in a Jan. 26 email to Montana Free Press that it aims to minimize water use to avoid resource conflicts and that its cooling-system details will depend on environmental assessments and customer needs, while also saying it does not intend to source water from the town of Broadview.
Quantica told Montana Free Press it is evaluating multiple cooling approaches, including “zero-water air cooling,” deep aquifer wells, treated greywater and “direct-to-chip liquid systems” that the company said would reduce water consumption 20% to 90% compared with older data-center cooling technologies. The reporting said Quantica does not currently possess water rights, and that it would need to go through a process designed to prevent negative impacts to existing water users—a step that can take years. Even so, Quantica anticipated moving ahead with site construction this year.
Sabey Data Centers is pursuing a different proposal centered on a facility west of Butte. The reporting said Sabey reached a power-procurement agreement with NorthWestern for up to 250 megawatts in December 2024, and later reached a tentative—still pending—agreement with the Butte-Silver Bow Commission to buy 600 acres of government-owned land in the Montana Connections Business Park west of the city for $1.2 million. The plan, as described in the coverage, also involves using water for cooling from an existing water right that conveyed snowmelt from multiple drainages in the Pintler Mountains to a smelter in Anaconda for nearly a century.
Rob Corbin, Sabey’s senior vice president of energy development, told lawmakers at an interim water policy meeting that the company will use “air-first cooling,” relying on water-based cooling tied to industrial water—described in the report as the Silver Lake water owned by Butte-Silver Bow—during the hottest days. The reporting said Corbin told lawmakers there won’t be “routine” water discharge, while noting that even systems designed to limit evaporative loss can require periodic draining and refilling.
In a dispute over how much water the project might actually use, the reporting said Sabey’s governmental affairs manager did not agree to a Montana Free Press interview request. It also said that Montana Tech Lance Energy Chair Bob Morris provided rough calculations to the Butte-Silver Bow Commission presentation, estimating additional cooling water would be required only when the outside air temperature exceeds 80 degrees or during a limited number of days in July and August. Morris estimated that evaporative cooling would use about 16 million gallons per year, and he characterized the overall annual water need as a small share of the industrial water right. But other residents questioned the company’s transparency, with at least one person asking why Sabey was not providing a “defined, guaranteed diagram” of its intended water use.
Beyond the specific proposals tied to data centers, the reporting described broader regulatory and planning questions that could shape outcomes for existing communities and existing water systems. Kerri Hickenbottom, a University of Arizona professor of chemical and mechanical engineering, described the situation as a “black box” in which communities are scrambling for information about data-center impacts, including water, as AI, cloud computing and government document storage expand. Hickenbottom said some local governments are developing approaches that could require data centers to use treated wastewater for cooling, and she said developers could also help push utilities to expand renewable power generation.
The reporting said local debate will likely continue as projects seek electricity and cooling resources while residents and environmental groups press for more transparency and clearer regulatory protections.