A legal challenge has been filed against the City of Missoula's strict restrictions on data centers and their locations. The Montana-based Frontier Institute, along with others, has joined forces to challenge the ordinance in the State's fourth judicial district. The lawsuit represents Cub Cloud A-I, a Missoula-based firm with 18 employees that provides AI and cloud infrastructure to local businesses.
Cub Cloud A-I operates an 850 square foot data center in an industrial area between Interstate 90 and Missoula International Airport. The company claims the new ordinance and zoning restrictions make it impossible to grow its operations or provide certain services in Missoula. The plaintiffs argue that the measure violates Montana's "Right to Compute Act," which aims to establish property owner rights and limit government infringement on developments such as data centers.
The "Right to Compute Act" is designed to protect property owners' rights and limit government restrictions on data center developments. Cub Cloud A-I insists that its planned expansion, including a new standalone building to house additional computing resources, would not generate noise, odors, physical intrusions, or other adverse conditions that would constitute a nuisance under the act. The company believes the ordinance unfairly restricts its ability to operate and expand.
Missoula's City Attorney, Ryan Sudbury, says the city is aware of the "Right to Compute Act" but believes it does not give data center companies the right to locate wherever they please. The city plans to "vigorously defend the City Council decision in this case." This lawsuit is the latest move in a continuing fight over data centers in Montana, with efforts to place initiatives requiring voter approval for new data centers on ballots in Yellowstone and Butte Silver Bow Counties failing ahead of the fall elections.
The plaintiffs, represented by the Arizona-based Goldwater Institute, hope to set a precedent for other states to see. The lawsuit challenges the City of Missoula's authority to regulate data center developments and argues that the restrictions imposed by the ordinance are unjustified. The outcome of this case could have significant implications for data center development in Montana and beyond.
The City of Missoula adopted the new ordinance changing zoning for data centers just weeks before the lawsuit was filed. The ordinance has sparked controversy among tech companies and industry groups, who argue that it stifles innovation and economic growth. Cub Cloud A-I and the Frontier Institute are seeking a court ruling that would allow the company to proceed with its expansion plans.
The case will be heard in the State's fourth judicial district, and a decision is expected to have far-reaching consequences for data center development in Montana. The plaintiffs and the city will present their arguments, and the court will determine whether the ordinance is constitutional and enforceable.
Key points
- The lawsuit challenges Missoula's data center restrictions, citing the "Right to Compute Act."
- Cub Cloud A-I claims the ordinance makes it impossible for the company to grow its operations.
- The city plans to defend the ordinance, arguing it has the authority to regulate data center developments.
