Water and Power are Inextricably Linked: The Realities of Data Centers in Montana

Data centers and AI have taken over headlines across the country, Montana included. Let’s talk about data centers in Montana and what that means for our valued water resources, landscapes, and communities.

As the demand and use of AI increases, so too does the presence of data centers – large buildings that store computer systems. Data centers consume enormous quantities of both power to operate and water for cooling. 

In Montana, water supplies are finite and already stressed from chronic and persistent drought, variable snowpack, and more demand than ever. The old adage “whiskey is for drinking, water is for fighting” accurately depicts the value of water to Montanans.

Despite this, data centers are coming to Montana, and they risk straining your water supplies. Here are some of the major problems associated with data centers and Montana’s current regulations and why we’re concerned:

  • Large data centers consumes 3-5 million gallons of water per day
  • These water withdrawals will compete with other water uses in the state, such as agriculture, fisheries, drinking water, etc. 
  • While smaller data centers use less water, the cumulative impact of many small centers is significant 
  • Montana’s exempt well loophole allows industrial water withdrawals without adequate permitting, public notice, or zoning review
  • Many of Montana’s rural areas lack zoning, meaning data centers may pop up with little, if any, local review or public participation
  • Montana’s Public Service Commission has a history of leaving ratepayers to subsidize large-scale industrial demands 
  • Data centers operate at an inconceivable scale and can rapidly scale up without additional oversight once established
  • Local taxpayers foot the bill for infrastructure, while profits and benefits leave the state
  • Likewise, local water resources will suffer while benefits leave the state
  • Just like water, data centers consume huge amounts of electricity. This could lead to increased demand on existing plants, or the need for new power plants. 
  • The costs of new power infrastructure from NWE would likely be passed on to ratepayers 

Quick Facts on AI Water Use:

  • The average large data center consumes 3-5 million gallons of water per day, the same as a town with 10-50k residents
  • A 100-word email using ChatGPT = 1 500ml bottle of water
  • Training GPT-3 = 5.4m liters of water, or annual water usage of 26 households

An Immediate Threat: Data Centers Proposed in Great Falls

A 2 million square-foot data center is proposed just northeast of Great Falls between Malmstrong Air Force Base and the Missouri River. The data center is expected to require up to 600 megawatts of electricity – enough to power approximately 88% of all Montana housing for a year. 

The power demand for a massive data center such as this would likely require new power sources, upgrades to existing infrastructure, or both. 

This proposed data center would also require enormous amounts of water for cooling. Waterkeeper is concerned that this could mean seeking a thermal exempt well provision that could allow up to 350 gallons per minute, or half a million gallons of water per day, without a water right. 

While this data center is still in the proposal phase, we must ensure the compliance of local government land use planning and a thorough environmental analysis of the effects on water, land, air, and community health.

Upper Missouri Waterkeeper will continue to track data centers across the basin and will work to ensure they don’t exploit our public water resources, evade environmental oversight, permitting, and public notice, and will work to protect local communities from strained water supplies, increased infrastructure costs, and increased pollution.

Before data centers are welcome in Montana, they need to pay it forward and ensure they won’t diminish local water quantity or negatively impact our communities.