Data center developer unveils huge power plans north of Billings

A data center company that plans to build north of Billings announced Wednesday it wants to produce 7,235 megawatts, more power than is currently generated in Montana.

In a press release that wasn’t shared to the Billings Gazette, Quantica Infrastructure also said it plans to provide power for multiple data center companies. Connecting to the electrical grid near Broadview would allow them to do that.

“This expansion significantly increases our total investment in Montana, and the additional power capacity would result in even more economic opportunity, construction jobs over several years, and strengthen the state’s power grid,” Quantica CEO John Chesser said in statement.

The announcement came the day of a Billings Gazette investigation revealed that Quantica plans to build 1,785 megawatts of gas-fired generation, an amount that would dwarf all of the current gas-powered plants in Montana.

The company told the Gazette the press release's timing came as its applications being moved into the study phase by NorthWestern Energy.

“This is an early step in what is typically a multiyear process,” the company said. “Projects like this require studying many different combinations of energy sources (e.g. renewables and natural gas) at the same time to determine what mix of these resources can be developed responsibly and cost effectively.”

Although the amount of power Quantica is proposing to generate is jaw dropping, the company noted it likely won’t consistently produce the maximum output referenced because of power fluctuations.

“For example, a 100 megawatt solar project may average only 25 megawatt over time, while a 100 megawatt wind project may average 35 megawatt because sunlight and wind are not constant,” the company said.

Still, even a quarter of that amount would be more than NorthWestern owns in the state for ratepayers. A megawatt is typically enough to power 750 homes for a year.

The term “firming generation” referenced in the press release likely refers to plans for 1,785 megawatts of gas plants, although the company said firming power includes natural gas, geothermal and “other potential sources.”

Quantica’s press release indicated the company is looking beyond its own needs for energy.

“Data center companies are looking for places that can deliver power, connectivity, and building capacity at scale,” Quantica CEO John Chesser said. “By investing in additional capacity now, we plan to address what we’re seeing in terms of power demand from data center companies.”

Chesser also touted the “expansion” would increase the company’s investment in Montana, and that “the additional power capacity would result in even more economic opportunity, construction jobs over several years, and strengthen the state’s power grid.”

Although Quantica just announced the information, the requests were submitted in March, and no interconnection applications submitted then indicate plans for geothermal or other sources beyond gas, wind and solar.

The press release marked the first time the company had explicitly referenced natural gas in its messaging as a power source. It was posted the same day as the Gazette story and also referenced preliminary discussions with the Montana Department of Environmental Quality after the Gazette obtained emails from the agency.

Interconnection applications can take years and are a necessary step in connecting to existing utility infrastructure. The applications begin a process to understand whether power systems could support the data center or if further developments would be needed to ensure grid reliability.

The amount of power mentioned in the press release would likely require NorthWestern to build additional infrastructure.

Quantica has pledged to pay for associated project costs amid rising concerns about how data centers could drive up costs for Montana homeowners and businesses.

“Quantica will pay for the additional power capacity for the Big Sky Digital Infrastructure Campus in Montana,” Charlie Baker, chief accounting officer of Quantica, said in the press release. "NorthWestern Energy’s ratepayers will not be responsible for the cost of the power. As a Billings resident, I appreciate this approach and it’s important to me that my neighbors don’t foot the bill for our project.”

NorthWestern documents shared online offer a possible explanation about the company’s interconnection applications.

On March 6, an unidentified developer hoping to connect to NorthWestern’s Broadview substation submitted 20 interconnection application requests. The data center, with nearly 8 square miles of land, is “strategically positioned” next to the substation, the recent press release noted.

The applications submitted in March are for connecting wind, solar, gas and energy storage that totals 8,435 megawatts — more than what Quantica mentions in its press release. Developers associated with those interconnection applications remain unnamed until an agreement with the utility is reached, according to NorthWestern spokesperson Jo Dee Black.

Two of the requests include about 1,585 megawatts explicitly for “energy storage and natural gas," while another request noted 250 megawatts for just natural gas. The three total 50 megawatts more for gas than shared DEQ emails the Billings Gazette obtained indicate, though it’s unclear how much of the requests account for energy storage.

Four other requests include 1,600 megawatts for wind power — which is larger than Montana's biggest wind farm. Clearwater Wind in Eastern Montana provides 750 megawatts.

In addition there are 10 requests to connect to the grid that include 3,600 megawatts for solar power. The largest solar farm in Montana is already in Yellowstone County with MTSun. It produces 80 megawatts of power.

The 1,600 megawatts constituting the rest of the applications were for energy storage that would help support the reliability of the wind and solar farms. The in-service dates for all the projects ranged from 2029 to 2032. After previously hoping to start receiving power for its data center in 2028, Quantica now looks to late 2029 as a starting date.

Two other projects in Yellowstone County submitted in March include 1,300 megawatts of solar, wind and energy storage, though those are looking at connecting 38 miles east of the Broadview substation to transmission lines associated with Colstrip.