Email: Unions urged Montana Democrats to back off negative messaging on data centers

As the conversation over data centers heats up in Montana, the state’s largest union federation urged leadership at the Montana Democratic Party to back off negative messaging on the hot-button issue.

Montana appears to be an attractive option for companies looking to build data centers, and three companies have already signed letters of intent to purchase massive amounts of power to fuel these centers in the state. As those conversations move forward, environmental groups and the Montana Democratic Party (MDP) are expressing concerns about the projects.

But Montana AFL-CIO, the union federation of which 95% of the state's unions are affiliated, is cautioning MDP, and asking it to take a more nuanced messaging approach.

AFL-CIO political director Amanda Frickle — who used to work for the state Democratic Party — addressed the Dec. 2 email to state party chair Shannon O'Brien, then-interim executive director Justin Ailport, Montana Democratic Legislative Campaign Committee Director Ciara Maxwell and Montana union leaders.

“Our ask is that MDP refrain from adopting exclusively negative messaging on this issue, and instead proactively engage with the Building Trades on their stance as well as with members of your Democratic delegation, particularly those representing communities where these centers are being proposed,” Frickle wrote.

Montana AFL-CIO executive secretary Jason Small said that the federation was asked to send the email by members of the Montana Building Trades Council, which represents the state’s building and construction trades unions. He added that AFL-CIO was not “directing” the party on how to message, but instead it was “a request for them to include the voices and perspectives of working Montanans in their messaging.”

“Asks like this are frequently made by countless organizations across the state. Any insinuation otherwise is categorically false,” he continued.

The apparent rift comes as data centers have become a political flash point across the country, although not necessarily one that falls cleanly along party lines. States like New York and Georgia are each considering bans or moratoriums on their construction. In Montana, where energy is relatively cheap, residents have expressed some heartburn about the prospect of driving up electricity prices and drawing down the state’s natural resources.

The email, which was obtained by the Montana State News Bureau, was sent a week after the Montana Democratic Party posted a graphic titled “What you need to know about data centers in Montana.”

“Once built, data centers only employ dozens of people and use incredible amounts of water. NorthWestern Energy WILL pass on this cost to consumers,” part of the post read. “They want to line their own pockets with the AI boom, and they’re making you pay for it.”

According to a review of the state party’s website and its social media posts, it does not appear the organization has posted anything disparaging data centers. Democratic Party Executive Director Emily Marburger did not respond directly to a question asking if the Montana Democratic Party has reversed course on negative messaging around proposed data centers but said in a state that the party “operates independently and does not take directives from special interest groups, including the AFL-CIO.”

“The Montana Democratic Party does not have an official position on data centers,” Marburger continued. “The party’s official policy positions are outlined in our platform, which delegates adopt during our convention process every other year. As interest in this issue grows across Montana, we can expect delegates may discuss it at a future convention.”

Marburger has stepped into the party’s executive director role since Frickle sent the email nearly three months ago.

Frickle wrote in the email that she was writing to “express concerns about some recent messaging from MDP regarding data centers.”

“While we understand this is a complex policy matter, I feel it is important that we remind you that the Building Trades and union members who work in the construction industry have been very supportive of conversations about the potential for data centers in Montana,” the email read.

It is not atypical for the labor unions and Montana Democrats to fall on different sides of an issue.

“As a union leader, I have great respect for the staff and leadership at Montana AFL-CIO and value our working relationship, and as a Democratic Party leader, I appreciate the assistance of our partner organizations as we pursue our platform objectives,” Joe Hancock, the chair of the Gallatin County Democrats and a local union leader himself, said in a text message. “However, it is a mistake to allow these numerous organizations to influence the messaging of the Montana Democratic Party, because they only adhere to narrow planks of the platform and at times can actually be opposed to others.”

Small called the labor movement “a key constituency of the Montana Democratic Party.”

“Every advocacy group, from environmentalists to education to health care, has unique perspectives, and it's extremely common for us to share those perspectives with party leadership,” he continued.

There are currently three known data center development companies — Sabey Data Corp., Atlas Power Group and Quantica Infrastructure — in discussions with NorthWestern Energy, having already signed letters of intent to buy groundbreaking amounts of power. If those plans come to fruition, the amount of combined power the companies are buying would sum between 850 and 1,400 megawatts of electricity by 2030, which is more than all the power being supplied to every Montana home today.

While it is not currently guaranteed the construction of these massive buildings will employ union jobs, Brandon Shaw, the business manager for UA 41 – Plumbers and Pipefitters, said that his union is in negotiations with Sabey to ensure that the data center project on 606 acres in Butte — a fiercely pro-union town — employs union workers. On its website, Sabey touts its use of union labor at a data center project in Indiana.

Small said that local unions are also engaging with Atlas and Quantica, but declined to comment on the status of the negotiations.

In more recent days, division over data centers has also cropped up among Democratic legislators.

Earlier this week, Sabey, NorthWestern, Butte-Silver Bow County and Gov. Greg Gianforte’s Energy Task Force held an open house at Butte’s Montana Tech for the public to talk about data center plans.

In a letter dated Feb. 25, House Minority Leader Katie Sullivan, D-Missoula, and two other Democratic representatives wrote to Gov. Greg Gianforte expressing concern over NorthWestern Energy partnering with the executive branch while the energy monopoly has an ongoing docket before state regulators.

“While on the surface such presentation may be informative to the public, it is also true that northwestern energy has requested a protective order through the Montana Public Service Commission to shield data center energy plans from public view,” the letter reads. “Because the public has so far been denied information regarding data center energy plans and their impact on ratepayers, it seems inappropriate for the executive branch to provide this same company with a one-sided promotional platform on the taxpayer’s dollar while important information is being withheld.”

That letter surprised the Butte delegation of Democratic legislators, who say they weren’t informed of the correspondence before it was sent.

“With that letter sent out, the Butte delegation was more upset because we didn't have the opportunity to sign on or not … we wanted to know why the minority leader sent it without contacting any of us,” said Sen. Derek Harvey, D-Butte, who is a union member himself as a firefighter.

Sullivan said the letter was meant to remind the governor and the PSC of their responsibility to Montana consumers, and that she recognizes that various communities will have differing opinions.

“Its not that we don't want regulations or safeguards, we just don't want any project like this to immediately get cut off without any type of consideration because the workers want to work,” Harvey added.

Editor's note: This story was updated to correct Shaw's job title.