Missoula County's pause on new data centers isn't going away anytime soon, and a new study suggests it may need a second year.
The county released its draft Data Center Zoning Study on Wednesday, NBC Montana reported. The study concludes that data centers pose enough potential risks to justify the county's moratorium and recommends stronger zoning.
Why there's a study
County commissioners adopted interim zoning on July 9, setting a one-year moratorium on new or expanded data centers. Under state law, the county has to complete a study to "verify that an emergency exists" before it can pursue solutions.
According to the draft study, the work built on information gathered while the county reviewed an application for an initially 7-megawatt "AI factory" data center proposed for the former Bonner Mill Planer Building.
The study pointed to increased electricity demand and related greenhouse gas emissions, electricity costs, noise, wildlife impacts and compatibility with homes, NBC Montana reported.
The county already has zoning rules for data centers, but the definition has changed. "Back then, data center meant something very different then what it means right now," Commissioner Josh Slotnick said at an earlier meeting, according to the station.
A ban is off the table
The study says an outright countywide ban would likely be hard to defend under Montana's Right to Compute Act. That 2025 law requires limits on the use of computational resources to be demonstrably necessary and narrowly tailored to a compelling government interest.
Instead, the study recommends that commissioners direct the Planning, Development and Sustainability Department to write updated zoning aimed at specific impacts. It lists possible rules on noise, lighting and heat, setbacks, public engagement, and performance standards for cooling systems and backup generation. It notes that zoning would naturally cover building size, placement and design, plus landscaping, parking, screening and buffering.
The study also says air and water quality and water rights are largely controlled by the state, so local zoning can't address everything.
Utility costs and the Legislature
The county will stay involved in NorthWestern Energy's Large New Load Tariff docket before the Montana Public Service Commission. The goal is to keep data center-related transmission, distribution and generation costs from falling on residential customers and other ratepayers, according to the study.
County leaders also plan to recommend statewide standards to lawmakers ahead of the 2027 Legislative Session. The study notes that several data center bill drafts have already been requested.
Moratorium could run longer
The current moratorium expires July 8, 2027. The study says it would be wise to let the 2027 session finish before writing permanent rules, which would likely mean extending the moratorium for a second year. State law allows one additional year.
Get involved
The county will hold a presentation and question-and-answer session at 6 p.m. Tuesday, Oct. 27, in the Home Arts Building at the Missoula County Fairgrounds, 1101 South Ave. W., according to a county announcement. Staff will also brief the Missoula Consolidated Land Use Board on Nov. 4 and commissioners at a public hearing Nov. 12. Comments are being taken at missoulacountyvoice.com.
Why it matters for contractors
For now, no new or expanded data centers will be built in Missoula County, and by our math the pause could last until July 2028 if commissioners extend it for the full extra year. Contractors who were eyeing data center work in the county should plan around that.
The rules that come next will matter just as much. Setbacks, noise and lighting limits, screening and buffering, and standards for cooling and backup generators would affect how any future data center is designed and built, and what it costs.
Electrical and utility contractors should also watch the NorthWestern tariff case. How the PSC handles big new power users could shape when and where large projects can connect to the grid across the state.
Anyone with a stake should show up Oct. 27 or comment online. Contractors who know what these buildings take to construct can bring useful perspective while the rules are still being written.