BUTTE -Montana is expected to see a growth in data centers and those centers use a lot of power. That’s why one Butte commissioner wants to make sure those added costs don’t fall on the shoulders of rate payers.
“The wave is coming and we’re going to be on the receiving end of it if we don’t get out ahead of it,” District 5 Butte Commissioner Russell O’Leary said.
O’Leary penned a letter to the Public Service Commission asking it to put checks in place on large energy users, such as data centers, that would prevent potential utility rate increases to regular customers. Data centers are large warehouses that hold many computer servers for data storage.
“There’s about 760 megawatts currently being served in the state.They’re asking to add an additional1,400 with current letters of intent. And so you could be doubling or tripling or quadrupling the amount of power that we use as a state in the next four years,” he said.
WATCH: Butte Commissioner explains concerns about data centers and energy use
O’Leary is asking the PSC to require a large load tariff and rate to these large energy users, so customers don’t get stuck with higher bills.
Northwestern Energy told MTN news that it is already in the process of developing a large load tariff to present to the PSC concerning this issue: “The Large Load Tariff will provide a framework for managing costs and obligations when new customers with significant energy load connect to NorthWestern Energy’s Montana energy system. The tariff will ensure growth is handled responsibly, costs are allocated fairly, and protections are in place for all customers.”
Butte-Silver Bow has entered a land sale agreement with the Washington-based Sabey Data Center to purchase 600 acres of property just in the Montana Connection industrial parks south of town to build a data center. A final decision is expected next month.
“I’m not opposed to it necessarily, I think that development of community, forward movement is good, but have to be realistic about what the risks are and make sure that folks are protected,” O’Leary said.
The council is expected to vote on approving the PSC letter at its Jan. 21st meeting at 7:30p.m.
