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POLITICS · JUL 23, 2026

Residents in Montana and Jefferson Seek AI Data Center Restrictions

Residents in Butte and Jefferson are pushing for ballot initiatives and moratoriums to restrict AI data center development over noise and utility concerns.

Residents in two distinct regions are seeking to restrict the development of AI data centers, citing concerns over water usage, utility strain, and noise pollution. In Jefferson, community members urged the City Council to implement a moratorium on such developments and requested that any facilities be placed at least 10,000 feet away from residential areas.

In Butte, Montana, the 406 People First coalition is gathering signatures for a ballot initiative. This proposal would require a two-thirds majority vote in a special election to approve any future data center projects. Small business owner Denise Kelly argues that residents should have the choice regarding whether to bring in a data center and dismisses claims that such restrictions would drive away existing businesses.

Butte Chief Executive J.P. Gallagher warned that the initiative's broad language could violate state laws, including the Right to Compute Act. He suggested the proposal might inadvertently deter other industries, such as banks, from entering the city. Despite these local tensions and a previous failed land deal, Sabey Data Centers continues negotiations with Butte-Silver Bow to develop a facility in the area.


Reported across 4 outlets
Actors
J.P. GallagherDenise KellySabey Data Centers

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