Montana stands at an important crossroads in our economic future. As the global economy becomes increasingly digital, the infrastructure that supports that transformation – data centers – has become essential. From cloud computing and artificial intelligence to telemedicine, online commerce, and modern agriculture, nearly every sector now depends on secure, reliable data processing. The question for Montana is not whether this transformation will happen, but whether we will participate in it.
At their core, data centers are modern economic engines. They bring long-term private investment, create high-paying technical and construction jobs, and add meaningfully to the local tax base that funds schools, roads, and public services. For both rural and urban communities, these projects can diversify local economies and anchor growth for decades.
In the very early discussions around data centers, we see some eagerness to strike a fatal blow to the conversation through misinformation, poor information and ulterior motives. Let’s have the discussion and ensure it is based on facts, reality and less on doomsday predictions.
Montana’s economy has changed over the last 50 years. A lot. The timber industry is a shadow of its former self and mining in the treasure state has declined precipitously since the 1970’s. The taxes those businesses paid have been picked up by the remaining businesses and residents. Montanans were “assured” during the upheaval of those industries and job loss that new and exciting opportunities, a new economy would emerge.
Technology related businesses are among the fastest growing sectors in the state, creating good paying jobs and critical tax revenue. Our economy is more diverse than ever in our history and the opportunities for entrepreneurs, our kids and grandkids, are every bit as diverse. Finally, we are turning the corner on exporting Montana’s greatest asset, our kids, and cheering the exciting new opportunities that provide meaningful career choices.
Data centers fit firmly in the evolving nature of our economy and are squarely in the burgeoning high tech space. Data and technology are as inextricably linked as loggers and sawmills.
Data centers require substantial upfront construction, engineering, and infrastructure investment. They support highly skilled technical jobs and generate demand for fiber networks, electrical upgrades, and local services. Just as important, they create a stable, long-term tax base that benefits entire communities. Economic development is not only about headcounts; it’s about capital, productivity, and positioning our state for future growth.
When it comes to energy use and cost, increasing demand stimulates additional investment in electricity generation, creating more supply and a larger customer base to spread the high fixed costs of generation. More supply creates lower costs and ripples throughout the entire economy.
In the meantime, Montana’s regulatory framework requires that large new electricity users be integrated in a way that does not shift costs onto existing customers.
Water use is another issue that often surfaces in these discussions, and here again the facts matter. Modern data centers are not the water-intensive facilities that many imagine. Today’s projects increasingly rely on closed-loop cooling systems, air-based cooling, or other advanced technologies that dramatically reduce water consumption. In many cases, water is reused continuously rather than consumed, and facilities are designed to operate efficiently in climates like Montana’s. With proper planning and oversight, data centers can be developed in a way that respects local water resources and aligns with Montana’s long-standing commitment to stewardship.
Montana has real advantages: abundant land, access to energy and fiber infrastructure, a stable business environment, and a workforce capable of meeting the demands of advanced industries. These strengths give us the chance to become not just consumers of the digital economy, but contributors to it.
Economic progress has always required a willingness to evolve. We can debate how best to develop data centers, and we should. Our focus should be on appropriate regulatory oversight based on facts. By embracing innovation with smart policy and careful oversight, we can attract investment, create opportunity, and build a stronger tax base that benefits communities across our state.
Undoubtedly, Montana’s economy has changed over the last several decades. The Montana Chamber will continue to be strong supporters of the traditional industries that built this state and advocate for a new and emerging economy. The Montana business community will do its part to ensure the discussion is factual and respectful for honest deliberation.
Todd O’Hair is the President & CEO of the Montana Chamber of Commerce.
