MISSOULA — Across the country, new data centers are coming online, consuming enormous amounts of power, some consuming as much power as a city the size of Missoula.
(WATCH: NorthWestern Energy proposes large load tariff for data centers to the Montana Public Service Commission)
Often, energy providers must build additional capacity for these data centers, which can increase utility rates for existing customers.
Other times, data centers, like Elon Musk’s X AI, build their own power generation, using natural gas turbines.
Here in Montana, there are numerous proposed data centers, including one in Bonner, located just outside Missoula.
With the knowledge that some of these data centers may come online in the not-so-distant future, NorthWestern Energy is taking proactive steps to ensure that ratepayers won’t bear the brunt of the costs.
Jo Dee Black, Public Relations Specialist for NorthWestern Energy, says that her company is putting forth a Large New Load Tariff rule to the Montana Public Service Commission, the State’s governing body of the company, to protect existing customers’ rates.
Within the proposal lie several terms aimed at ensuring current customers won’t foot the bill - including large load customers having to pay for the costs to serve their load, paying up-front for infrastructure upgrades, as well as surcharges for upgrades.
The Large New Load Tariff rule would only apply to new customers needing power that is 5 megawatts or greater.
This is largely aimed directly at data centers, as they can consume anywhere from 5 megawatts, all the way up to over 100 megawatts for large-scale facilities.
It’s important to note that the new proposed rule is still a ways out from being put into place, but that doesn’t mean that various entities aren’t trying to get into the game early - all so that they can have a seat at the table when discussions about the rule occur.
“We want to ensure that sort of the oversight and things that have to do with data centers really do conform with best practices. So by having a seat at the table, that allows us to be involved in the process,” Anne Geiger, Strategic Initiatives Manager for the City of Missoula, said.
Anne Geiger is the Strategic Initiatives Manager for the City of Missoula, which just filed an intervention in the proceedings of the rule.
An intervention is essentially a motion that allows entities to be a part of the rule’s regulatory discussion.
She says that by having a seat at the table for the discussions of the rule, local municipalities will be able to weigh in more on how to best serve their communities, something echoed by Svein Newman, Climate Action Program Manager for Missoula County.
“One thing, for instance, would be ensuring that data centers pay for any infrastructure that's built to serve them and that those costs aren't passed on to other people's bills,” Newman said.
Both the City of Missoula and Missoula County say that while they are looking to influence how this rule may be put into place, their exact goals are still to be finalized, as this rule is still early on in the process of being approved or denied.
We’ll be sure to keep you updated as the discussions play out, as how the rule may be implemented is still months, if not years, out.
