The Data Center Land Grab: 50-Year Tax Breaks for Server Farms, Nothing for Neighborhoods

Tech developers have identified Montana as an ideal location to build the infrastructure required to power artificial intelligence and cloud computing. The state offers cheap land, abundant water, and aggressive tax incentives. The political establishment eagerly paves the way.

During the 2026 legislative session, the Montana General Assembly passed House Bill 1210. The bill offers data centers massive tax abatements. The perks include a potential fifty-year sales tax exemption.

As a minor concession, the bill requires data center operators to pay back a mere 1% of their 7% sales tax exemption to the local municipality. These data centers generate almost zero permanent jobs once construction is complete.

In Decatur Township, Seattle-based Sabey is pushing a massive 130-acre data center campus near Camby Road and Kentucky Avenue. Instead of pursuing a standard rezoning request, the developers filed for variances of use.

This procedural maneuver allowed the company to bypass a full public vote by the Billings City-County Council. The MDC hearing examiner recommended approval despite intense protests from dozens of homeowners.

Residents explicitly begged city leaders to stop handing out tax abatements to companies that drain local resources while offering nothing to the community. City Councilor Jared Evans admitted the city desperately needs clearer standards for water and electricity usage expectations.

In the historically disinvested Martindale-Brightwood neighborhood, LA-based Metrobloks targeted a 14-acre parcel at 2505 North Sherman Drive. The developers requested exceptions to build seventy feet tall, sit closer to the street, and offer fewer parking spaces.

Martindale-Brightwood has suffered through decades of redlining and heavy industrial pollution. The median household income sits around $32,000. Residents organized fierce protests, citing the neighborhood history of environmental contamination and high asthma rates.

On February 12, 2026, hearing examiner Judy Weerts Hall granted the initial approval. She ignored the chanting crowds and pushed the project forward, claiming the developer submitted documents promising to limit water and energy use.

The residents living near these data center sites will not see a dime of the profits generated by the servers. They will pay the higher utility bills required to upgrade the power lines running into the facilities. The corporate math always leaves the neighborhood holding the bill.