Montana Faces Water Woes as AI Data Centers Expand

Locals worry about dwindling water supply, especially in drought-stricken areas

Published on Feb. 9, 2026

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Montana is grappling with the environmental impact of AI data centers, which are increasingly being built across the state and consuming vast amounts of water to cool their equipment. This is raising concerns among locals about the strain on the state's already limited water resources, particularly in drought-affected regions that rely heavily on snowmelt runoff.

Why it matters

Montana's water supply is heavily dependent on seasonal snowmelt, making it particularly vulnerable to the water-intensive demands of AI data centers. As the state faces the prospect of more data centers, there are growing fears that this could exacerbate water scarcity issues and negatively impact agriculture, livestock, and residential use.

The details

AI data centers require massive amounts of water to cool their servers and equipment, and this water usage is not always returned to the local water supply in a usable form. With several new AI data centers proposed for locations like Billings and Butte, Montana residents are concerned about the impact on their already strained water resources, especially in drought-affected areas that rely on snowmelt runoff.

  • A couple years ago, Forbes warned about the massive water use of AI data centers.
  • There are several proposed AI data centers planning to be built in Montana, including one north of Billings and another in Butte.

The players

Montana Residents

Locals in Montana who are concerned about the impact of AI data centers on the state's limited water supply, especially in drought-affected areas.

Proposed AI Data Centers

Several AI data centers that are planning to be built in Montana, including one north of Billings and another in Butte.

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What’s next

Residents and local officials will likely continue to debate the pros and cons of AI data centers in Montana, with a focus on the impact on the state's water supply and potential solutions to mitigate the water usage.

The takeaway

The expansion of AI data centers in Montana highlights the growing tension between technological progress and environmental sustainability. As the state grapples with this issue, it will need to find a balance that protects its precious water resources while also embracing the economic opportunities presented by the AI industry.