A Montana Data Center Could Generate $47 Million in Annual Taxes

A 1,000 MW hyperscale data center could generate up to $47 million annually in Montana property taxes.

The University of Montana’s Bureau of Business and Economic Research (BBER) modeled the economic impacts of large-scale data centers on jobs, income, and tax revenue within the state. This study offers a framework for understanding potential structural shifts in Montana’s economic and tax landscape tied to hypothetical data center development.

Using REMI economic modeling, BBER estimated that building a 1,000 MW data center over four years could create 500 construction jobs and up to 1,500 jobs statewide, with a personal income boost reaching $93 million during construction. Once operational, the center might support 250 direct jobs and 452 statewide jobs, increasing personal income by $34.2 million. Property tax revenue is projected at $47 million annually, potentially rising to $54 million if new power generation is co-developed. Director Jeff Michaels emphasized that while employment gains are significant, the long-term property tax base expansion could be Montana’s largest benefit.

Potential legislative changes in the upcoming session may alter these projections or the regulatory framework affecting such developments.

Although Montana currently lacks hyperscale data centers, some factors such as geography and energy resources could potentially influence future interest in such projects, which might affect local economies and tax bases.

University of Montana’s BBER publishes new study on the economic impacts of data centers
By Zach Volheim, KPAX News