New Study Shows Most Data Center Money Would Leave Montana

The Real Economic Impact Of Montana Data Centers

It seems like everywhere you look these days there's talk about another data center being built. TV, social media, the newspaper, all seem to come tout the same promises: jobs, jobs, jobs, and a big boost to the local economy.

But it does make you wonder, who's actually getting those jobs, and where is all that money really going?

University of Montana Study Breaks Down a $20 Billion Data Center

A recent presentation in Helena by the Bureau of Business and Economic Research at the University of Montana took a look at what a hypothetical $20 billion data center in Montana would mean for the state's economy.

According to Montana Free Press, the economists found that only about 10%, or roughly $2 billion, would actually be spent on Montana workers, contractors, and businesses.

The other $18 billion would go toward specialized equipment like servers, cooling systems, electrical components, and other technology that's manufactured outside Montana and shipped in.

That doesn't mean there aren't benefits.

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Data Centers Would Still Create Jobs In Montana

The report says a project that size, which is actually only half the size of the proposed development in rural Yellowstone County, would create around 500 construction jobs, with about 250 permanent jobs once the facility is up and running.

A $20 billion investment sounds massive, and it certainly creates opportunities. But it also shows that the flashy number doesn't tell the whole story.

Maybe the better question isn't just how much a data center is worth. Maybe it's how much of that investment actually stays in Montana, and who ends up benefiting from it in the long run.