In a significant move for Montana’s growing data center industry, NorthWestern Energy has signed a major energy supply agreement with Atlas Power Group. This agreement will provide the energy required to power Atlas Power’s flagship data center in Butte, Montana, starting in 2026. This strategic partnership is poised to support the continued expansion of the data center industry in the region, offering a reliable, cost-effective energy supply to meet the increasing demand.
Overview of the NorthWestern Energy and Atlas Power Agreement
NorthWestern Energy, which already serves Atlas Power as a transmission service customer, will begin supplying 75MW of power to the Butte data center facility starting in 2026. The agreement includes a provision for an additional 75MW of power over the next three to five years, reflecting the growing demand for energy in the area.
Atlas Power Group’s Montana facility, situated six miles southeast of Butte, currently operates at a maximum capacity of 75MW. However, with the expected expansion in the coming years, the agreement ensures a reliable and scalable energy supply for future growth.
A Critical Partnership for Montana’s Data Center and Energy Industries
NorthWestern Energy’s ability to provide this substantial energy supply is due to its diversified energy portfolio, which includes renewable sources such as hydroelectric, wind, and solar power, alongside traditional sources like coal and natural gas. This diversified approach allows NorthWestern to balance sustainability with the need for consistent and affordable power, which is essential for high-demand operations like data centers.
Brian Bird, President and CEO of NorthWestern Energy, commented on the deal, stating, “NorthWestern Energy’s strategic energy generation resource acquisitions and our balanced energy portfolio enable us to serve new large energy supply customers like Atlas Power Group’s Butte data center while continuing to provide our current customers with affordable and reliable energy.”
Atlas Power’s Expansion and the Importance of Reliable Energy
Atlas Power, a company focused on developing flexible load data center hosting operations, is capitalizing on its ability to offer tailored hosting solutions. With additional hosting facilities in North Dakota, Kentucky, and Texas, the Montana facility represents Atlas’s commitment to expanding its presence in key markets across the U.S.
Jeff Young, President and COO of Atlas Power, emphasized the importance of long-term energy contracts, stating, “Securing long-term power supply at predictable prices is critical to support continued expansion and investment in our facilities.” The Butte data center’s energy needs, which align with Atlas’s vision for future growth, will be met through this strategic partnership with NorthWestern Energy.
Background on the Atlas Power Butte Facility
The Atlas Power Butte facility, originally owned by cryptocurrency mining firm Cryptowatt, is a former technology center located on the site of the Mike Mansfield Advanced Technology Center. Cryptowatt’s operations were mired in controversy, resulting in the facility’s closure in 2019 and the jailing of its owner. Following these events, Atlas Power acquired the site, which now functions as a data center with a maximum power capacity of 75MW.
Atlas Power’s acquisition and subsequent development of the Butte facility is a testament to the company’s resilience and adaptability in the face of industry challenges. The company is now well-positioned to meet growing energy demands as it further expands its operations across the U.S.
NorthWestern Energy’s Broader Energy Strategy in Montana
The deal with Atlas Power is just one example of NorthWestern Energy’s broader strategy to meet the rising demand for energy across Montana and other states in its service area, which includes South Dakota, Nebraska, and Yellowstone National Park. The company operates a diversified portfolio that includes hydroelectric power, wind, coal, and solar power, with 35% of its capacity derived from hydroelectric generation.
In addition to the Atlas Power deal, NorthWestern Energy has signed another significant energy supply agreement with a different data center, committing to deliver 50MW of power starting in 2027. This agreement further underscores NorthWestern’s role as a critical energy supplier to the growing data center industry in Montana.
The company’s infrastructure, which includes the 175MW Yellowstone County Generating Station and the 1,480MW coal-fired ColStrip Plant, will also play a key role in meeting future energy demand. As energy consumption grows in the region, NorthWestern is preparing to increase its power generation capacity, particularly with plans to expand its coal-fired facilities by 2026.
The Growing Demand for Data Center Energy in Montana
Montana is quickly becoming a hub for data center development, thanks to its low energy costs and access to renewable energy sources. As more companies turn to the state to power their data centers, energy providers like NorthWestern Energy are crucial in meeting the needs of this burgeoning industry. Data centers are known for their high power consumption, and securing reliable, cost-effective energy supplies is a priority for operators like Atlas Power.
NorthWestern’s ability to cater to this growing demand is not just a benefit for Atlas Power but also an example of the company’s strategic planning in securing long-term, stable energy contracts for large-scale customers. By diversifying its energy generation sources, NorthWestern Energy ensures it can provide reliable energy even as demand increases.
Future Growth and Opportunities for Collaboration
As Atlas Power looks to expand its data center operations, the continued collaboration with NorthWestern Energy will be pivotal. The energy supply agreement sets the stage for further development of the Butte facility and other potential sites in Montana. Atlas’s focus on flexibility and scalability aligns well with NorthWestern’s ability to provide reliable and affordable power, making this partnership a win-win for both parties.
In addition to energy supply, NorthWestern’s comprehensive transmission services ensure that Atlas Power can maintain a steady flow of power to its data center operations, avoiding interruptions and ensuring optimal performance. This seamless integration of power generation and transmission infrastructure is essential for the success of large-scale data centers.
FAQ Section
1. When will NorthWestern Energy begin supplying energy to Atlas Power’s Butte data center?
NorthWestern Energy is set to start supplying 75MW of power to the Atlas Power data center in Butte, Montana, beginning in 2026.
2. How much energy will NorthWestern Energy provide to Atlas Power in the coming years?
The agreement includes 75MW of energy starting in 2026, with an additional 75MW expected over the next three to five years as Atlas Power expands its operations.
3. What is the role of NorthWestern Energy’s diversified energy portfolio in this agreement?
NorthWestern Energy’s diversified portfolio, which includes renewable sources like hydroelectric, wind, and solar, allows the company to provide affordable and reliable energy to large-scale customers like Atlas Power.
4. What is the significance of the Atlas Power Butte facility?
The Atlas Power Butte facility, originally owned by Cryptowatt, is a cryptocurrency mining and data center facility with a maximum energy capacity of 75MW, located in a prime location for power and transmission.
5. How does this partnership benefit the local economy?
The agreement with NorthWestern Energy supports the expansion of the data center industry in Montana, contributing to job creation, increased investment, and economic growth in the region.
