Port of Northern Montana Confirms Significant Availability of Low Cost Renewable Electric Power at Shelby Data Center Development Park

SHELBY, Mont., January 27, 2020 / PRNewswire / – The Port Northern Montana recently confirmed that it has a significant amount of low-cost renewable electric power in its data center development park in Shelby.

In particular, following a cooperation agreement with NaturEner United States, there are approximately 10 megawatts (MW) of renewable electric power currently available at the Shelby Data Center Development Park from the Glacier Wind Farm to 4 to 4.5 cents per kilowatt hour (kWh), and by the end of the year it is expected that around 30 MW will likely be available in the data center farm at around 3.5 to 4 cents per kWh.

With this renewable energy at low cost confirmed and Montana State Newly revised and improved tax incentive and rebate for data centers, Shelby, MT is well positioned for the development of data centers and cloud computing.

After the initial passage and approval in 2017, the Montana legislature in 2019 revised the tax incentive to extend it to certain qualifying data centers to further attract the development of cloud computing in areas such as Shelby, MT.

As a result, a qualified data center to be in Shelby, MT (as well as other parts of Montana) is eligible for a reduction in its property tax payable up to 75% of its assessed value during the first five years following the issuance of a building permit.

As Montana has no sales tax, the Montana property tax incentive / reduction for data centers combined with the significant capacity of renewable electric power in the port of Northern Montana makes Shelby, MT a very attractive and competitive site for the development of large data centers.

The port of from northern Montana Data center development park at Shelby consists of ten sites of approximately 140 acres zoned for the development of large data centers and has significant infrastructure including the city’s water main, two electrical substations and highway access 15.

Furthermore, the Shelby, Montana Region was recently designated as Opportunity zone, which is a new federal economic development program designed to encourage long-term private investment in low-income communities. This program offers a federal tax incentive to taxpayers who reinvest unrealized capital gains in areas of opportunity, such as Shelby, MT, and serves as a catalyst for investment in specific elements such as infrastructure, business start-ups and expansion, downtown revitalization, workforce development and affordable housing. In particular, the Shelby Data Center Development Park is included in the Opportunity Zone.

Shelby is also located along major transportation corridors. Because of these corridors, Shelby continues to see an increase in fiber network installations in existing rights-of-way and network capacity. Besides, Shelby has a good combination of fiber optic capacity and redundancy and is connected to internet hubs everywhere United States and Canadian. Shelby offers cloud computing or data center companies a robust fiber network.

A 2017 study indicated that Shelby, MT is an attractive low-cost rural area with the infrastructure to set up a data center. Detailed study Shelby’s infrastructure, labor, tax incentives, construction and operating costs, climate and ownership available to help interested parties make decisions about where to locate a data center in Shelby, MT. With its combination of cooler weather all year round and the wealth of renewable wind energy, Shelby is a great place to build air-cooled cloud computing data centers, according to the study. Cold outdoor air is becoming a big draw for data center operators, and many leading cloud computing companies are building new data centers in relatively cold and windy locations to reduce power and cooling costs. . Consequently, the establishment of a data center in Shelby will significantly reduce the energy consumption costs associated with cooling. The study also indicated Shelby is an affordable place to set up a data center because Shelby’s a fairly flat topography is ideal for the construction of a data center because the earthworks needs are minimal and the industrial or commercial real estate in Shelby who goes from $ 2,000 To $ 10,000 per acre or $ 0.05 To $ 0.25 per square foot, which is considerably less than other sites across the country.

In summary, Shelby, MT is an ideal location for data centers due to its power capacity, cool climate, low costs, infrastructure, tax incentives, and affordability.

for more information, contact Larry Bonderud from the port of Northern Montana at 406-450-3331 or [email protected].

SOURCE Port of Northern Montana


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