Researchers at the University of Montana’s Bureau of Business and Economic Research presented economic modeling this week showing how data centers could reshape rural employment in the state, as several proposed facilities face mounting local resistance.
The bureau analyzed a hypothetical data center in Yellowstone County, estimating it would draw approximately 500 temporary construction workers and create roughly 250 permanent jobs once operational. The modeling was presented Tuesday in Helena as part of the bureau’s twice-yearly economic summits on Montana-specific issues.
Projects Stall Amid Local Opposition
The timing of the research highlights a broader tension: while data centers promise significant employment and tax revenue, communities across Montana are increasingly wary of hosting them. A proposed facility in Bonner, located east of Missoula, collapsed earlier this month after the property owner withdrew support. A similar project in Great Falls met the same fate in November 2025, when a citizen group successfully petitioned Cascade County to temporarily halt construction pending new regulations.
In Butte, a local coalition is pushing for voter approval requirements before any new data center can be built, signaling that some communities want direct input on whether to pursue such projects at all.
Economic Case and Community Questions
The bureau’s analysis suggests data centers offer tangible economic benefits to rural areas facing population decline and limited employment options. The hypothetical Yellowstone County facility would represent substantial job creation in a region where such opportunities are scarce. However, the stalled and failed projects indicate that residents are asking harder questions about long-term costs—power consumption, water use, infrastructure strain, and whether short-term construction jobs and modest permanent employment justify permanent changes to their communities.
The bureau, which regularly analyzes major Montana industries and economic trends, has become a key source for understanding how large-scale development could affect the state’s economy. Earlier in 2026, the bureau delivered an update on Montana’s major industries and modeled the potential economic impact of a proposed sales tax, underscoring its role in informing public policy debates.
As data center proposals continue to surface in Montana, the friction between developer interest and community resistance appears likely to intensify. The University of Montana research provides a framework for understanding the employment side of the equation, but it also underscores what local coalitions are now insisting on: a thorough public conversation about whether those jobs are worth the trade-offs each community would accept.
