GREAT FALLS— An Atlanta-based company has withdrawn its plans to build a massive data center between Malmstrom Air Force Base and the Missouri River, sparking relief from environmental advocates and disappointment from economic development officials.
Guy Alsentzer, director of Upper Missouri Waterkeeper, expressed significant relief at the news. The non-profit works to protect the water of Montana's Upper Missouri River Basin.
"When we see one of these, arguably one of the largest, get shelved, we have a big sigh of relief,"Alsentzer said.
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The proposed 569-acre data center by Atlanta-based real estate developer Ardent would have consumed enormous amounts of energy and water resources.
"We are talking about a data center proposed that would consume energy equal to about 85 to 88% of the existing base load in Montana," Alsentzer said.
When the Great Falls Development Alliance announced the project in June, Ardent said it was working with Northwestern Energy on a power transmission study, but admitted progress was slow.
Beyond power consumption, Alsentzer raised concerns about water usage and environmental impact.
"We're talking about several million gallons per day. We're talking about inevitable thermal pollution, which is to say the wastewater that it would discharge," Alsentzer said.
The Great Falls Development Alliance had expressed optimism when the project was announced in June, but that turned to disappointment with the latest news.
“There's always a little bit of a disappointment when you look at that potential tax base,” said Jolene Schalper, Great Falls Development Alliance Executive Vice President. "Data centers, in particular, have a really higher tax base. Even at the lowered state rate for data centers or one data center building, it provides the same tax rate as over 900 homes in our community. So that's a really big boost to our school system. That's a big boost to our public service support. However, if a project's not going to work or is not going to be the best fit, then it's just not going to be the best fit."
The GFDA says data centers aren't part of their strategic plan, but when a project of this scale comes forward, they begin a due diligence process, including extensive research and community outreach.
"If it's a company that has built before, we go and visit those sites. If it's a large impacting project, we start working with the state environmental regulators and officials right away," Schalper said.
In June, Ardent estimated the project would provide between 150 and 200 high-paying permanent positions. However, Alsentzer disputes these job creation claims.
"We're talking about a baker's dozen, maybe two dozen jobs after construction of the facility," Alsentzer said.
Alsentzer now has his sights set on three other proposed data centers for Montana, near Billings and Butte. Like other groups, he's concerned about the added impact on ratepayers.
In a statement to MTN News, NorthWestern Energy said new commercial customers with large energy loads, including data centers, will pay their fair share of integration and service costs.
"Infrastructure investments will ultimately mean a larger, more resilient energy system in Montana. However, new large load customers, such as data centers, will have to pay for their costs to integrate with the energy system," Northwestern Energy said.
Alsentzer says Montana and the Northern Rockies are being looked at as the new hub for data centers, and he'd like to see legislation in place that holds companies accountable.
"What we need to have is a cohesive fabric that talks about how are these proposals being vetted and how do they make sure that they're proving ahead of time. They're going to benefit us, our wildlife, our heritage, our drinking water supplies instead of penalize us and leave us with a hefty bill," Alsentzer said.
