Company's land purchase puts Butte data center plans in question

BUTTE, Mont. — Long-discussed plans for a data center in Butte faced a new hurdle after a different buyer moved to purchase the land tied to the project.

About 600 acres at the Montana Connections Business Development Park had been set aside for a possible data center for more than a year, as Butte-Silver Bow had offered a buy-sell contract to Sabey Data Centers, based out of Tukwila, Washington.

That changed when REC Silicon, which already operates in the Montana Connections Business Development Park, enacted a right-of-first-refusal clause in its contract with Butte-Silver Bow to buy that same acreage for $1.2 million.

REC Silicon confirmed with NonStop Local that any proposals or plans for the newly acquired land are to-be-determined, as the manufacturer is still in the early purchasing phases.

However, Butte-Silver Bow Chief Executive J.P. Gallagher shared excitement over the move possibly bringing business growth to Butte.

"They're going to look at some business expansions and some other things that they want to do because they can't just purchase it and do nothing with it," Gallagher said. "Just like Sabey, they've got to have a business plan of what they're going to do. When we look at development of jobs and economic vitality of our community, it's a positive."

Gallagher also explained that the change raised new questions about whether a data center would still be built in Butte.

Should Sabey still be interested in the project, a new land sale agreement with Butte-Silver Bow and other issues would still need to be resolved, including utility-related contracts.

"We think we still have ample acreage out there for them, but it's got to fit what they need," Gallagher said. "We're still in conversations, and it's a long ways from happening if they're going to come or not. They still have to work out contracts with NorthWestern Energy, as well as whatever fits their needs or fits the needs of Butte-Silver Bow."

NonStop Local reached out to Sabey Data Centers to ask whether it was still interested in building a data center in Butte on a different parcel of land. We will provide an update if we receive a response.