Your Power Bill Could Soar Due to Secret Data Center Deals

Highlights

• A coalition of nine Montana nonprofits has filed a petition with the state's Public Service Commission (PSC) against NorthWestern Energy.
• The groups are concerned that plans to supply massive amounts of electricity to new data centers will cause residential power bills to increase significantly.
• The proposed data centers could demand up to 1,400 megawatts of power by 2030, more than double the current daily needs of all of NorthWestern's existing customers combined.
• Petitioners are demanding a separate customer class and rate structure for data centers to shield residents from footing the bill for new infrastructure.

Montana Residents Face Potential Bill Shock

A coalition of nine Montana-based nonprofits is sounding the alarm over NorthWestern Energy's plans to power a "data center boom," arguing that the public utility's existing customers could be left paying for the massive energy demands of a few tech companies. The groups filed a formal complaint with the Montana Public Service Commission (PSC), urging the regulatory body to step in and protect residents from shouldering the costs of new power plants and transmission lines.

At the heart of the issue are agreements NorthWestern Energy has made to supply power to at least three new data center projects. The petitioners claim these deals have been made without proper regulatory oversight, "short-circuiting" the public's right to know and potentially violating state law.

A Staggering Demand for Power

According to the complaint, the planned data centers could require a staggering 1,400 megawatts of power by 2030. To put that figure in perspective, it is roughly equivalent to the annual electricity needs of over one million homes and more than double the 759 megawatts that NorthWestern’s 413,000-plus residential customers currently use on a typical day.

The companies involved include:

• Atlas Power: Seeking 150 megawatts for a facility in Butte.
• Sabey Data Center Properties: Planning a 600-acre campus in Butte that could expand to 250 megawatts.
• Quantica Infrastructure: Proposing a project in Yellowstone County that could grow to 1,000 megawatts by 2030.

Advocates Demand Regulatory Action

The petitioners argue that allowing these energy-intensive facilities to connect to the grid without special considerations will force NorthWestern to build expensive new power plants, the cost of which will be passed on to everyday Montanans.

"Communities across the country have suffered when large, noisy data centers move into their neighborhoods, raising their power bills and taking their water," said Shannon James, an organizer with the Montana Environmental Information Center. "Montana has a chance to get ahead of the curve and protect existing utility customers."

To prevent this, the coalition is asking the PSC to take two key steps:

1. Create a separate customer class specifically for data centers.
2. Establish a unique tariff (rate structure) for this class, ensuring they pay the full cost of their service and any necessary grid upgrades.

NorthWestern Energy's Response

Jo Dee Black, a spokesperson for NorthWestern Energy, stated that the company is committed to creating a specific tariff for large-load customers. "New commercial customers with large energy loads, including data centers, will pay their fair share of integration and service costs," Black wrote in an email. She added that contracts for new data centers will be submitted to the PSC "as they are executed."

What Happens Next?

The decision now rests with the five-member, all-Republican PSC. If the commission grants the petitioners' request, it will trigger a formal review process. This could include public hearings where NorthWestern Energy would have to provide more details about its plans and expert witnesses could testify on the potential financial impact on residential customers. The outcome of this case could set a major precedent for how Montana manages the growing energy demands of the tech industry.