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MT — Power Infrastructure Updated January 2026

Montana

Power generation, transmission, storage, and interconnection topics relevant to data center power supply in Montana.

WECC Natural Gas Solar Wind Storage Data Center PPAs Queue Bottlenecks Transmission Constraints

Overview

Montana’s grid is managed by NorthWestern Energy and connected to the broader Western Interconnection through WECC (Western Electricity Coordinating Council). The state faces tight supply conditions and transmission congestion during peak demand, prompting investments in fast-ramping natural gas, large-scale wind, and two planned HVDC (high-voltage direct current) lines. NorthWestern Energy signed its first data center power contract in December 2024, committing to serve 250+ MW of new load by 2029.

Generation Projects

Natural Gas

NorthWestern Energy is building a fast-ramping gas plant to shore up reliability and integrate renewables.

  • Yellowstone County Generating Station (Laurel): A 175-MW RICE (reciprocating internal combustion engine) plant with ~170 MW of fast-ramping capacity, targeted for commercial operation in 2024 to support resource adequacy and wind integration.[1]

Solar

Montana has modest utility-scale solar, with one recent project completed.

  • Apex Solar (Dillon): An 80-MW AC project with 198,300 modules, completed in 2023 by Clēnera.[2]
  • NorthWestern Energy’s integrated resource plan notes a large queue of solar QF (qualifying facility) projects under development, but many do not reach commercial operation.[1]

Wind

Montana’s wind buildout is concentrated in the eastern plains, with Clearwater Wind as the state’s largest recent addition.

  • Clearwater Wind Energy Center (Miles City area): The fourth phase completed in 2024, adding 750 MW across Custer, Garfield, and Rosebud counties.[3]

Transmission and Grid

Montana is pursuing two major HVDC projects to relieve congestion and connect to out-of-state markets.

  • North Plains Connector (planned): A 3,000-MW, 420-mile HVDC line from Bismarck, ND to Colstrip, MT. NorthWestern Energy signed an MOU to own 10% (300 MW) of the capacity. Approvals targeted for 2026, construction in 2028, operation by 2032.[4]
  • Colstrip Transmission System upgrade (planned): NorthWestern announced a $700 million DOE GRIP grant supporting the North Plains Connector consortium, including funding for a potential Colstrip Transmission System upgrade.[4]
  • BPA Montana-to-Washington Transmission System Upgrade (M2W): Bonneville Power Administration reinitiated this project in May 2023 to increase transmission capacity. The proposal includes a new Moose Gully compensation substation near the Garrison-Taft 500-kV lines in Missoula County, ~11 miles of 500-kV conductor replacement on the Dworshak-Taft line, and upgrades at multiple substations in Montana, Idaho, and Washington.[5]

Battery Storage

Montana’s utility-scale battery pipeline remains uncertain.

  • Beartooth Battery (50 MW, 4-hour): Selected in a 2020 RFP but dismissed by the Montana Public Service Commission.[1]
  • NorthWestern Energy’s IRP notes a large queue of battery QF projects in development, with uncertainty about which will be built.[1]

Data Center Power Agreements

NorthWestern Energy signed its first data center contract in late 2024.

  • NorthWestern Energy + data center developer (LOI): On December 17, 2024, the utility announced a letter of intent to provide regulated energy service for a developer planning new Montana data centers, starting at 50 MW in 2027 and growing to 250+ MW by 2029.[6]

Interconnection Queue

Montana’s queue is large relative to current grid capacity, with transmission congestion limiting new supply.

  • Queue volume: Interconnection.fyi lists 35 active NorthWestern Energy generation requests totaling ~7.26 GW as of early January 2026 (daily-updated, third-party aggregation).[7]
  • Official queue: NorthWestern’s OATI OASIS hosts the official generation interconnection queue spreadsheet for diligence.[8]
  • Transmission bottlenecks: NorthWestern’s IRP states Montana faces tight supply conditions, limited import reliability, and transmission congestion that restricts access to external energy during peaks.[1]

What to Watch

  • North Plains Connector permitting: Approvals targeted for 2026; delays would push back Montana’s largest transmission expansion.
  • Data center contract details: NorthWestern has not disclosed the developer’s name or project location; watch for MPSC filings as the contract moves to formal approval.
  • Queue attrition: Montana’s 7+ GW queue far exceeds current load; monitor which projects survive commercial operation vs. which withdraw.

Sources

[1] NorthWestern Energy, “Montana Integrated Resource Plan 2023 (Final),” 2023, https://www.northwesternenergy.com/docs/default-source/default-document-library/about-us/erp-irp/2023_montana_irp_final.pdf (accessed January 8, 2026).

[2] Governor’s Office (Montana), “Governor Gianforte Cuts Ribbon on New American-Made Energy Facility,” October 3, 2023, https://news.mt.gov/Governors-Office/Governor_Gianforte_Cuts_Ribbon_on_New_American-Made_Energy_Facility (accessed January 8, 2026).

[3] Governor’s Office (Montana), “Governor Gianforte Celebrates Nearly $1 Billion Energy Investment in Montana,” September 20, 2024, https://news.mt.gov/Governors-Office/Governor_Gianforte_Celebrates_Nearly_1_Billion_Energy_Investment_in_Montana (accessed January 8, 2026).

[4] NorthWestern Energy, “NorthWestern Energy to Participate in Regional Transmission Projects,” December 12, 2024, https://northwesternenergy.com/about-us/our-company/2024/12/12/northwestern-energy-to-participate-in-regional-transmission-projects (accessed January 8, 2026).

[5] Bonneville Power Administration, “Montana-to-Washington Transmission System Upgrade Project (M2W),” n.d. (project page, reinitiated May 2023), https://www.bpa.gov/learn-and-participate/public-involvement-decisions/project-reviews/montana-to-washington-transmission-system-upgrade (accessed January 8, 2026).

[6] NorthWestern Energy, “NorthWestern Energy Announces Agreement with Data Center Developer in Montana,” December 17, 2024, https://northwesternenergy.com/about-us/our-company/2024/12/17/northwestern-energy-announces-agreement-with-data-center-developer-in-montana (accessed January 8, 2026).

[7] Interconnection.fyi, “Latest Active NorthWestern Energy Generation Interconnection Queue Requests,” updated daily, https://www.interconnection.fyi/?transmission-owner=NorthWestern%20Energy (accessed January 8, 2026).

[8] OATI (NorthWestern Energy OASIS), “Interconnection Queue (XLS),” https://www.oasis.oati.com/nwmt/nwmtdocs/Interconnection_queue.xls (accessed January 8, 2026).