Montana Poised to Be Epicenter of AI Revolution

Big Tech's race to deploy AI is spurring a rush to build data centers in the state, raising concerns about transparency and environmental impacts.

Published on Feb. 15, 2026

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While Montana may not be viewed as an artificial intelligence hotspot, it is considered one of the top states in the country with the potential to "power the AI revolution." Proposals for new data centers to support AI are gaining traction in Montana, as data-center developers and energy executives work to capture a piece of the rapidly growing market. However, the lack of transparency from these companies has raised concerns from environmental watchdogs and local residents about the potential impacts on the state's water resources and electricity costs.

Why it matters

Montana's abundance of cheap, reliable electricity and cool, dry climate make it an attractive location for data centers to support AI and other data-intensive technologies. But the rush to build these facilities has sparked worries about the environmental toll, particularly on the state's limited water resources, as well as the potential impact on electricity rates for existing customers.

The details

Several companies, including Quantica Infrastructure and Sabey Data Centers, have proposed building large data center campuses in Montana. Quantica is planning a "high-performance computing" campus south of Broadview that would require up to 1 gigawatt of power, more than the average load NorthWestern Energy uses to serve its 400,000-plus customers. Sabey has reached a power-procurement agreement with NorthWestern for up to 250 megawatts and is in talks to purchase land in Butte-Silver Bow County, where it plans to use the county's existing water rights for cooling. However, details about the water usage and environmental impacts of these projects have been scarce, raising concerns from environmental groups and local residents.

  • In December 2024, Sabey Data Centers reached a power-procurement agreement with NorthWestern Energy.
  • In early 2025, Sabey reached a tentative agreement with the Butte-Silver Bow Commission to purchase 600 acres of land.
  • In January 2026, Sabey presented its plans to the Butte-Silver Bow Commission, sparking both support and opposition from the public.

The players

Quantica Infrastructure

A recently formed Texas-based company planning a "high-performance computing" campus to support artificial intelligence in Broadview, Montana.

Sabey Data Centers

A Seattle-area company that has reached a power-procurement agreement with NorthWestern Energy and is in talks to purchase land in Butte-Silver Bow County to build a data center.

NorthWestern Energy

Montana's largest utility, which has signed preliminary agreements with several companies for large amounts of power to support new data centers.

Montana Environmental Information Center

An environmental nonprofit that has raised concerns about the lack of transparency from data center developers and the potential impacts on the state's water resources and electricity rates.

Bob Morris

The Lance Energy Chair at Montana Tech, who provided rough calculations of Sabey's anticipated water usage based on the company's facility requirements and local climate data.

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What they’re saying

“We've had to turn people away in a room that holds hundreds. It's fascinating from an academic perspective, but certainly from the perspective of somebody who wants to get regulations in place to protect Montanans from what the richest men in America want to do.”

— Anne Hedges, Executive Director, Montana Environmental Information Center (Montana Free Press)

“Why is Mr. Morris putting together the presentation for Sabey and using the words, 'I'm assuming' (and) 'this is what I've read'? Why isn't Sabey producing their own defined, guaranteed diagram of what they intend?”

— Linda Trevenna, Butte Resident (Montana Free Press)

What’s next

The Butte-Silver Bow Commission is expected to make a decision on Sabey's proposal to purchase 600 acres of land in the coming months.

The takeaway

The rush to build data centers in Montana to support the AI revolution has raised concerns about transparency and the potential environmental impacts, particularly on the state's limited water resources. As more companies look to capitalize on Montana's cheap, reliable electricity and cool climate, local communities are demanding more information and oversight to ensure their interests are protected.