REC Silicon opts to buy land once slated for Sabey Data Center in Butte business park

The Sabey Data Center proposed for a business park west of Butte faces the prospect of a significant obstacle — losing land the company anticipated using for the sprawling facility.

REC Advanced Silicon Materials LLC, a current tenant of the Montana Connections Business Development Park, seems poised to acquire property potentially earmarked for the sprawling data center.

J. P. Gallagher, chief executive of Butte-Silver Bow County, said Wednesday that REC Silicon notified the city-county on April 17 that the company plans to exercise a 1996 right of first refusal agreement regarding land at the business park.

Specifically, REC Silicon described plans to buy 627.8 acres at a price of $2,000 per acre, for a total of $1,255,606.

A right of first refusal stipulation in a real estate property agreement grants its holder the first opportunity to make an offer on a property and buy it if it goes on the market, according to the National Association of Realtors.

The Butte Council of Commissioners agreed a year ago to sell 606 acres to the Sabey Data Center. Commissioners in early February approved a deadline extension until Aug. 11 for Sabey to close on the land deal.

Sabey said when it was doing title work, it discovered that REC Silicon had a right of first refusal clause on much of the land Sabey wanted to purchase from Butte-Silver Bow.

REC Silicon has a huge facility in the business park, and the clause essentially gives it the first opportunity to buy the land on the same terms that Sabey was slated to receive.

Gallagher was asked to comment about the potential impact on the Sabey project.

“Whether REC ultimately sells the acreage, retains it or transfers it to another party, including Sabey, is a decision that rests solely with REC,” he said. “Because of that, it would be premature for us to speculate on how REC’s decision may affect the proposed data center project.”

Gallagher said REC Silicon’s decision could also impact Cenate, another company that has optioned to purchase property in the Montana Connections Business Development Park.

REC Silicon had not responded by press time to a request for comment.

The proposed Sabey Data Center has stirred support and controversy in the region, with supporters citing potential tax revenues and jobs, and critics expressing concerns about water and power consumption.

A delegation from Butte-Silver Bow visited a Sabey Data Center in Quincy, Washington, earlier this month and returned with mostly positive impressions.

Gallagher has been generally bullish about the Sabey project.

“As for my reaction, Butte‑Silver Bow remains committed to supporting economic development and major investment in our community,” he said. “We are excited to learn about the plans REC Silicon has for the 627 acres of land that they are now going to buy from Butte-Silver Bow.”

REC Silicon representatives are scheduled to meet in Butte on Friday with the Targeted Economic Development District’s board of directors and offer an update about the company’s right of first refusal decision and its economic development plans for the 627 acres.

The agenda also includes a time slot for an update from Sabey.