Ad hoc committee tells Butte‑Silver Bow commissioners Sabey data center fits existing water and grid plans but community questions remain
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Summary
An ad hoc committee presented findings on the proposed Sabey data center, saying industrial water and electricity capacity can accommodate an initial 50 MW build expanding to 200 MW, while community speakers raised concerns about corporate finances, grid impacts and local hiring guarantees.
Chief Executive Gallagher convened a Feb. 18 presentation by an ad hoc committee tasked with fact‑finding on Sabey’s proposed data center in the Montana Connections Business Park, and committee members described technical details for water, cooling and electric connections while community members urged caution and sought stronger local commitments.
The committee chair, Brian Sullivan, said the panel took a neutral fact‑finding role and represented Butte‑Silver Bow, Northwestern Energy, Montana Tech, the TED board and community members. “Our mission is really to find facts around this project,” Sullivan said, adding the committee would not take a position but answer community questions.
The committee’s technical presenters said the industrial water and power systems can support the project as proposed. Jim Keenan, Butte‑Silver Bow water plant superintendent, outlined the Silver Lake industrial water system and said industrial users draw chiefly from Warm Springs Creek and storage reservoirs; Keenan said the industrial system is financed by its customers and separate from the potable system. Bob Morris, Montana Tech energy chair, said recent industrial averages were about 2.5 million gallons per day and that the Sabey site’s estimated annual water use would be in the neighborhood of 16 million gallons per year (about 44,000 gallons per day average), with most peak demand concentrated in a one‑to‑two month summer window when the cooling towers use evaporative water. “The annual water demand is well within the capacity of the industrial water system,” Morris said.
On power, Morris said Sabey’s load would begin near 50 megawatts and could grow to about 200 megawatts, requiring Northwestern Energy transmission upgrades and a new substation; he added Sabey will fund upgrades and that Montana law and the Public Service Commission process are designed to protect existing customers from rate harm. “Sabey will fund all necessary upgrades,” Morris said, and the PSC must approve terms for large customers.
Community commenters testified both for and against the project. Cindy Sanderson, a former professor of finance, said she could not locate Sabey’s financial statements and noted credit ratings in the BBB range and past partner bankruptcies, urging the county to obtain partner financial disclosures before proceeding. “Sabey is privately held,” Sanderson told commissioners. Dave Allman raised questions about the project footprint, the size of the power draw — which he compared to local demand — and whether the county should solicit competitive proposals before selling land.
Union speakers and construction trade representatives urged approval to capture apprenticeship and construction jobs. Arlen Norquist of Local 82 told commissioners that putting 50–100 apprentices through training “changes the lives of 50 or a 100 young people plus their families.” Ad hoc presenters and some commissioners highlighted the multi‑year phased build (50 MW increments over a decade) and noted that job estimates (the committee cited Sabey numbers of about 200 permanent operations jobs at full build) combine direct operations employees, tenant staff and contracted on‑site support.
Committee members acknowledged open questions that must be resolved through permits and contracts: diesel generator size and testing schedules, exact blowdown volumes from cooling systems, e‑waste disposal plans, lighting and noise mitigation, and housing impacts during construction. The ad hoc group advised the council to negotiate sideboards (contract terms and permits) that set consumption and operational parameters and stressed that Northwestern Energy and the PSC process will shape tariff and connection terms.
No formal council action was taken on the data‑center proposal at the Feb. 18 meeting; Chief Executive Gallagher noted the county holds a six‑month extension on the purchase‑and‑sale agreement and that the ad hoc committee will continue due diligence. “There will be more due diligence that goes along with it,” Gallagher said.
What’s next: the ad hoc committee will seek detailed design numbers from Sabey on water blowdown, generator specifications and local‑hire plans; Northwestern Energy and Sabey must negotiate connection terms that go before the Montana Public Service Commission for review.
