Butte-Silver Bow County’s chief executive is challenging a ballot initiative that would require voter approval before any data center can operate in the county, saying its definition is so expansive it could inadvertently block banks and other legitimate enterprises from locating there.

Signature collection is underway for the measure, which would require a two-thirds vote of registered county voters before the county can permit or approve any data center project. Organizers must collect more than 3,600 signatures by the end of August to place the initiative on the ballot.

The Definition Problem

Chief Executive J.P. Gallagher contends the initiative’s definition of “data center” is too broad. The measure defines a data center as any facility with electronic equipment to store and transmit digital information—a description Gallagher argues could apply to nearly any modern business. “It could limit a new bank from coming into town, it could be limited any kind of economic development of anybody that has transmission of electronic data,” he said.

The initiative emerged after Sabey Data Centers, a major development prospect, withdrew from a previously agreed-upon project at the Montana Connections industrial park. Supporters of the ballot measure cite concerns about rising energy rates and potential strains on the county’s water resources from large data center operations.

Competing Visions for Growth

Initiative organizers Eric Nyland and Evan Barrett represent a different view of the county’s economic future. Barrett, who has worked as an economic developer for 26 years, framed the measure as necessary oversight. “At some point, you got to take the keys to the car away from grandpa, because he’s not driving right,” Nyland said, suggesting current leadership has mismanaged development decisions.

The dispute reflects a broader tension in Butte-Silver Bow County between attracting major industrial projects and managing their environmental and fiscal impacts. Data centers can bring tax revenue and jobs but also consume substantial electricity and water—resources that carry costs for a county still navigating post-mining economic transitions.

The signature deadline at the end of August will determine whether county voters get to weigh in on data center development authority. If the initiative qualifies, the two-thirds approval threshold would set a notably high bar for future projects of that type.