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
NorthWestern Energy is enabling investment in Montana while ensuring new growth doesn’t increase rates for existing customers.
Growing Montana’s economy. Protecting Montana customers.
NorthWestern Energy is protecting what matters most to families and businesses: affordable, reliable energy. Our Large New Load Tariff ensures data centers pay their own way, with no cost-shifting to existing customers.
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. This competitive advantage allows us to attract data centers while keeping rates affordable for existing Montana customers. When data centers pay their own way, economic growth strengthens our entire energy system, benefiting all Montanans.
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 tariff is designed to protect existing Montana customers by ensuring that data centers and other large new load customers pay their own way. The contract terms proposed in the tariff will prevent cost-shifting to existing customers.
The tariff 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 puts Montana customers first. By ensuring data centers pay their own way, we can pursue economic growth while protecting affordable, reliable energy for all Montanans. This approach strengthens our energy system, attracts responsible investment, and ensures Montana’s long-term prosperity benefits everyone – not just new industries.
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.
Data centers pay their own way – costs will not be shifted to Montana families and businesses
NorthWestern Energy’s Large New Load Tariff is a guardrail that protects existing Montana customers. Data centers and other large new load customers will pay the full cost of the infrastructure and electric service needed to support their operations. Those costs will not be shifted to Montana households, small businesses, farms, or ranches. Existing customers will continue to pay only for the service they receive, while new large load customers will be responsible for the costs they create.
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
Your rate protection
Montana customers will never subsidize data center energy costs. Under the Large New Load Tariff, data centers will pay their fair share of infrastructure costs. Your rates only reflect the energy you use — new growth will not increase what you pay.
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.
Facts Matter
Rick Edwards, Director of Community Connections, provides the facts Montanans need about decisions that affect their energy future.
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 Large New Load Tariff ensures that data centers pay their own way, with no cost-shifting to existing customers. Your rates reflect only the cost of serving your home or business. Data center infrastructure costs are fully paid by the data centers themselves.
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.