Sabey’s Land Acquisition in Butte
Sabey Data Centers has taken a significant step toward establishing a major presence in Montana with the acquisition of a 600-acre property in Butte. The $1.2 million land purchase, located within the Montana Connections business park at German Gulch Road and Rick Jones Way, positions the company to develop what could become a substantial data center campus. The transaction timeline has been extended, with the Butte-Silver Bow Council approving a new closing deadline of February 11, 2026, providing Sabey additional time to finalize their development plans.
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Power Infrastructure and Energy Partnership
The development’s energy needs will be substantial, with Sabey signing a non-binding Letter of Intent with NorthWestern Energy for 50MW of power starting in 2027. The agreement includes expansion options that could increase capacity to 250MW or more by 2029. NorthWestern Energy’s diversified portfolio, which includes 35% hydroelectric power in Montana, aligns with growing industry demands for sustainable energy solutions. This partnership represents one of several significant industry developments in the region that are transforming Montana’s technological infrastructure.
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Evidence of Multiple Facilities
While Sabey has officially announced plans for one data center, multiple indicators suggest a broader strategy. During an October conference call, Senior Vice President Rob Corbin revealed the company is “looking to move to Montana for a couple of locations.” Documentation repeatedly references “data centers” in plural form, and NorthWestern Energy’s regulatory filings include two separate non-disclosure agreements with Sabey, strongly implying multiple projects. This expansion coincides with other major infrastructure developments occurring across the technology sector.
The Mystery of the Second Facility
NorthWestern Energy executives have hinted at a second, potentially government-related facility. CEO Brian Bird suggested that an “unnamed facility” likely involves government contracts, though the utility has declined to provide specific details. “It is not appropriate for NorthWestern Energy to comment on this topic,” a company spokesperson stated, citing confidentiality requirements. This strategic positioning follows broader market trends toward secured facilities for specialized clients.
Strategic Importance and Regional Impact
Sabey’s Montana expansion represents a significant investment in the state’s technology infrastructure. The company, a joint venture between Sabey Corporation and National Real Estate Advisors, operates data centers across multiple states, including Washington, New York, Texas, Oregon, and Virginia. The Butte development could bring substantial economic benefits to the region while supporting the growing demand for cloud computing and data storage services. This move aligns with related innovations in technology infrastructure development nationwide.
Industry Context and Future Outlook
The data center industry continues to expand into new markets, with companies seeking locations offering reliable power, favorable economic conditions, and potential for growth. Sabey’s planned Montana facilities join a wave of recent technology infrastructure projects transforming regional economies. As demand for data processing and storage increases, strategic expansions like Sabey’s Montana initiative will play a crucial role in supporting the digital economy’s evolving needs while creating new opportunities for local communities.
The development timeline:
- Land acquisition closing extended to February 2026
- Initial 50MW power capacity planned for 2027
- Expansion to 250MW+ possible by 2029
- Potential second facility details remain confidential
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