A version of this article appeared as an op-ed in print and online around Montana and the West.
by Anne Hedges
Over the last several months, NorthWestern Energy has vehemently denied that data centers are behind its desire to “merge” with another South Dakota utility, Black Hills Energy. However, when company executives announced the deal to investors, they repeatedly pointed to data centers as a top reason for the two utilities’ efforts.
NorthWestern is currently asking the Montana Public Service Commission (PSC) to approve the so-called “merger” (which looks a lot more like an acquisition of NorthWestern) without considering any information regarding the 14 proposed data center projects that NorthWestern mentioned on an investor call earlier this year. NorthWestern has refused to answer any questions in the PSC proceeding regarding data centers. NorthWestern’s desire to keep this information secret from the PSC and utility customers should raise red flags for all Montanans. If we aren’t careful, we are going to get burned — as has happened to millions of utility customers across the country when data centers come to town.
When announcing the deal on August 19, 2025, NorthWestern CEO Brian Bird told investors that merging NorthWestern with Black Hills Energy would help both utilities be “more competitive” in the race to “capture data center opportunities” and would enable them to “make strategic investments that foster economic development, including addressing the growing demand for energy, including from data centers.”
While states around the country are taking action to prevent unregulated data centers from disrupting communities, harming water resources, and increasing electricity rates, Montanans are vulnerable. The Legislature has given sweetheart property tax deals to data centers and has systematically undermined local control, limiting the power of county commissions to protect rural communities. Our Governor, a tech mega-millionaire, is eager to sell out Montana communities and homeowners to the tech industry.
For example, despite repeatedly saying that the merger with Black Hills Energy will allow it to better serve data centers, NorthWestern Energy has refused to answer a single question regarding data centers in the merger proceeding before the PSC. Unfortunately, the majority of PSC Commissioners have agreed with NorthWestern at every turn. NorthWestern’s refusal is not terribly surprising considering its CEO Brian Bird will earn a bonus of more than $13 million if the merger is successful. Other top executives will also earn millions. Apparently, these financial incentives are too enticing for the company to be honest with customers and the PSC about its data center deals.
NorthWestern Energy has redacted the letters of intent it has signed with more than a dozen data centers. Images via PSC filings.
To be clear, NorthWestern is about to get swallowed up by a much larger company so shareholders can make a boatload of money. NorthWestern Energy currently serves about 700,000 electric and gas customers in Montana and 150,000 gas and electric customers in South Dakota and Nebraska. After the merger, the new company’s service territory would include another 1.35 million gas and electric customers from Black Hills Energy in an additional five states. The newly-formed mega monopoly would provide electricity and gas in eight states, amounting to a service area of about 20% of the United States, according to NorthWestern’s CEO.
A majority of the board members for the new company, Bright Horizons Energy Corporation, will be from Black Hills Energy. The behemoth multi-state monopoly utility will not need to prioritize Montanans — except as far as the state will help the new company meet its revenue and data center goals.
It increasingly appears that Montana will be a cash cow for this enormous new monopoly. NorthWestern and Black Hills refuse to be transparent about their plans to serve data centers or disclose how the merger could impact Montanans’ residential electricity rates, which have already seen a nearly 40% increase in the last few years. We should not be kept in the dark about the new utility’s data center agreements that are likely to enrich utility shareholders at Montanans’ expense.
MEIC has spent months visiting numerous communities across the state to educate and answer questions about data center risks and impacts. Based on the hundreds of people we’ve met and thousands who have signed petitions against unregulated data centers in Montana, it has become clear that this is truly a bipartisan issue that is extremely concerning to Montanans.
We need bipartisan politicians at every level of government who are willing to challenge NorthWestern’s secrecy and monopolistic instincts and protect everyday Montanans — and our water and our communities — from subsidizing data centers. We can protect ourselves, but we need politicians who are willing to do so on our behalf. Time is short, so let’s get to work, roll up our sleeves, demand transparency and tell NorthWestern that there will be no merger without the answers that customers need to ensure we won’t have to pay far, far more than our fair share.
This article was published in the June 2026 issue of Down To Earth.
