Butte Data Center Fight Shifts to County Commission After Ballot Setback

Proposals for a development moratorium put local officials at the center of a dispute over large-scale data centers and the county's authority to regulate them.

BUTTE, Mont. — The fight over large-scale data center development in Butte-Silver Bow has moved from the November election to county government, where commissioners are considering proposals that could temporarily halt approvals while local regulations are studied.

The November 10 Council of Commissioners agenda included a request from District 2 Commissioner Michele Shea to direct the county attorney to prepare a temporary moratorium on data center development approvals.

The agenda also included an updated moratorium proposal submitted by 406 People First, the citizens' organization whose attempt to place a data center initiative on the November ballot became the subject of a Montana Supreme Court dispute.

The proposals reflect continuing concern over how large data centers should be regulated and whether the county should approve new developments before establishing additional local rules.

A Proposed Pause on Development

A proposed county ordinance, identified as Council Bill 2026-03, would impose an interim zoning moratorium on the approval, construction, development, expansion or establishment of hyperscale data centers in Butte-Silver Bow County.

The ordinance also calls for a study of appropriate regulations governing such facilities.

According to the county's November 4 council records, the proposed ordinance had been held in abeyance following consideration by the Committee of the Whole on October 28.

The November 10 agenda brought the issue forward again through Shea's request and the revised proposal from 406 People First.

A temporary moratorium would be different from a permanent ban. Its stated purpose would be to give county officials time to examine possible regulations before allowing additional development approvals.

Whether a moratorium is adopted, how broadly it would apply and how long it would remain in effect would depend on the language ultimately approved by the county.

Ballot Initiative Derailed by Court Dispute

The latest county proposals follow an unusual legal battle over a citizen-sponsored initiative that would have required voter approval for data center construction or expansion.

406 People First gathered signatures in an effort to place the measure before voters in the November 3 election.

Organizers were initially told they had until August 14 to submit the necessary signatures. They later learned that county election officials were applying an earlier July 13 deadline under state law.

The disagreement led to litigation.

On September 22, the Montana Supreme Court temporarily sided with the initiative's supporters, allowing the measure to move toward the ballot while the legal challenge continued.

Two days later, however, the court reversed that temporary order after learning that ballots had already been printed and mailed, with some voters having returned them.

The justices concluded that adding the initiative at that stage presented problems under Montana election law.

The measure therefore did not appear on the November ballot.

The court's reversal of the temporary order did not amount to a final ruling on every issue raised by the underlying appeal.

Questions About Local Control

The original citizen initiative sought to require a special election before the county could approve certain data center developments.

The proposed requirement would have been unusually demanding: approval from two-thirds of all registered voters, rather than simply two-thirds of those voting in a particular election.

That proposal and the county's pending moratorium discussions represent different approaches to the same underlying question: how much local control should residents and elected officials have over major data center projects?

Large data centers can require substantial electrical infrastructure, water and cooling systems, land and other public resources. The scale and effects of any particular development depend on its design, location and operating requirements.

For local officials, the issue involves balancing potential economic development against infrastructure needs, land-use considerations and community concerns.

The proposed moratorium would create an opportunity to examine those questions before additional hyperscale facilities receive approval.

What Commissioners Must Decide

The county now faces several decisions.

Commissioners must determine whether an interim moratorium is warranted, what kinds of facilities it should cover and which regulations should be examined during any temporary pause.

They must also consider the county's legal authority to impose restrictions and how those restrictions would interact with existing land-use rules.

The November 10 agenda establishes that the issue remains before local government, but an agenda listing alone does not establish that a moratorium has been enacted.

For residents who supported putting the question directly to voters, the county proceedings provide another avenue for seeking greater oversight of data center development.

For potential developers, the outcome could affect the timing and conditions of future projects.

The larger question remains unresolved: whether Butte-Silver Bow will establish additional controls before large-scale data center development moves forward.

After a ballot initiative was derailed by a dispute over election deadlines, the next decisions rest with the Council of Commissioners.