Straight Answers on Data Centers
Jason Merkel, NorthWestern Energy Vice President Distribution, explains what the arrival of data centers could mean for our energy system.
Data centers and Montana’s energy future
Data centers bring new jobs, tax revenue and long-term investment to towns and cities.
Montana should not be left behind as the data center industry rapidly expands across the country. NorthWestern Energy is ensuring Montana is positioned to capture the benefits — new jobs, increased tax revenue and long-term investment.
Forty years ago, industries including renewable energy, biotechnology and e-commerce logistics were either in their infancy or virtually nonexistent. Today companies such as NextEra Energy Resources, Invenergy and GlaxoSmithKline are established — employing Montanans, generating tax revenue, and supporting critical infrastructure and services across the state. Data centers are following a similar trajectory.
Opportunities for Montana
Economic Growth for Communities
Data centers bring new jobs, tax revenue and long-term investment to towns and cities.
Modern Infrastructure
These facilities are essential for the digital economy, much like high-speed, high-quality, seamless internet access and the evolution of telecommunications were for previous generations.
Montana’s Advantage
Montana offers reliable, affordable power — strengthened by NorthWestern Energy’s expanded ownership of the Colstrip Power Plant and a clean energy portfolio anchored by hydroelectricity — making our state an ideal location for data center development.
NorthWestern Energy submits large new load tariff proposal to Montana Public Service Commission
NorthWestern Energy submitted an application to the Montana Public Service Commission on March 31, 2026 requesting approval of a Large New Load Tariff. The proposed tariff will establish requirements and contract terms for customers seeking new electric service of 5 megawatts or greater.
The proposal is designed to support Montana’s long‑term energy future and economic growth while ensuring strong protections for service reliability and affordability for existing customers. It creates a clear, consistent framework for serving large new electric loads that is fair, responsible and aligned with Montana values.
A commitment to Montana’s energy future
NorthWestern Energy’s Large New Load Tariff proposal balances growth with customer protections and system reliability. This solution supports high‑quality economic development, protects Montanans’ reliable, affordable energy service, and is right for Montana’s unique energy landscape.
Given the strong interest from both the Montana Public Service Commission and the public, we believe it is important to bring this issue forward now, instead of waiting until a contract with a large new load customer is in place. Filing this tariff now supports constructive dialogue as we all work together toward a solution that serves Montana best.
Protecting Existing Customers from Cost Shifting
The proposed tariff ensures customers requesting service for large new electric loads are responsible for the costs associated with serving those loads.
Customer protections and contract requirements
- Minimum service commitment periods, including longer minimum terms for customers with very large loads (50 megawatts or greater)
- Minimum demand and minimum energy billing requirements to ensure these customers pay for the capacity and energy needed to serve them
- Performance assurance and collateral requirements to secure customer payment and performance obligations
- Termination cost provisions designed to address costs remaining if a customer reduces load or terminates service before the end of the contract term
Public review and Montana Public Service Commission regulatory process
The Montana Public Service Commission is the authority for reviewing and approving electric tariffs in the state. NorthWestern Energy’s filing initiates a public regulatory proceeding that will follow established Montana Public Service Commission procedures.
NorthWestern Energy’s priority throughout the process is to provide safe, reliable energy service to customers at affordable rates.
NorthWestern Energy will always put Montana customers first. We are committed to protecting your rates and reliability while responsibly supporting new opportunities — like data centers — that can help Montana thrive for generations to come.
Montana DEQ on Voices of Montana
A recent Voices of Montana conversation with Montana Department of Environmental Quality Director Sonja Nowakowski takes a thoughtful, fact-based look at the environmental and energy policies shaping Montana’s future.
Montana Labor and data centers
Representatives from two Montana labor unions share facts on data centers and the value and opportunity they afford Montana workers.
Learn more about the data centers proposed in Montana
Sabey Montana
Sabey Data Centers would transform the industrial property within the Montana Connections Business Development Park near Butte into one of the most advanced, energy-efficient data center campuses in the country.
Big Sky Digital Infrastructure
Big Sky Digital Infrastructure (BSDI) is a Quantica platform dedicated to developing the Big Sky Campus, a 5,000-acre energy and technology hub in Yellowstone County north of Billings.
Emerging industries become foundational
Our commitment is to ensure that new power generation assets and infrastructure developments are aligned with long-term Montana customer needs. We do not make investments for speculation — we invest for a future that includes data centers as reliable, long-term partners in Montana.
Infrastructure & investment that benefit all:
- Data centers require significant upfront investment and long-term planning, such as improved roads, electric grids and new schools.
- These facilities are essential infrastructure for the digital economy.
- Data center developers will cover their fair share of costs to connect to Montana’s power grid and other necessary services.
- Rising energy demand creates an opportunity to make Montana’s energy system more efficient.
- Using infrastructure more effectively could help lower costs per unit of energy.
Addressing common concerns
Are data centers a good investment for Montana?
Yes. Data centers are a proven source of jobs, tax revenue, and long-term economic strength — helping diversify and grow Montana’s economy.
Will data centers raise my energy costs?
No. NorthWestern Energy’s approach ensures that existing customers are protected.
Can Montana’s energy system handle data centers?
Yes. With careful planning, transmission studies, and a balanced mix of renewable and on-demand generation, we can support new industries while maintaining reliable service for all.