NorthWestern Energy to Supply Power for Butte, Montana Data Center Atlas Power Group

Rhea-AI Summary

NorthWestern Energy (Nasdaq: NWE) has announced plans to provide electric supply service to Atlas Power Group's data center in Butte, Montana. The initial energy supply load is expected to be 75 megawatts starting in 2026, with potential growth of another 75 megawatts in the following 3-5 years.

Atlas Power Group, currently a NorthWestern Energy transmission service customer, will partner with NorthWestern Energy for cost-effective and reliable energy supply. The data center will implement demand response capabilities to support grid reliability. This announcement follows another recent agreement to provide energy service for a different data center developer in Montana.

NorthWestern Energy's ability to serve new customers is strengthened by its recent addition of the Yellowstone County Generating Station and anticipated capacity from the Colstrip Plant starting January 2026.

Positive

• Secured new large-scale customer with initial 75MW demand starting 2026
• Potential additional 75MW demand growth in following 3-5 years
• Customer's demand response capabilities will help grid stability
• Multiple data center contracts indicating growing customer base

Negative

• Significant power supply commitment may require additional infrastructure investment
• Large power demand could strain existing capacity until new generation sources come online

Insights

Energy Infrastructure Analyst

<p>This power supply agreement represents a <b>significant strategic expansion</b> for NorthWestern Energy, with an initial <b>75 MW load commitment</b> starting 2026 and potential growth to <b>150 MW</b> within 3-5 years. The deal's timing aligns perfectly with NWE's capacity expansion from the Colstrip Plant acquisition. This positions NWE to capitalize on the growing data center market while maintaining grid stability.</p><p>The demand response capabilities of Atlas' data center will provide important grid flexibility, potentially reducing peak load stress and operational costs. For context, 150 MW represents approximately <b>5%</b> of NWE's total generation capacity, making this a material addition to their customer base.</p>

Data Center Infrastructure Specialist

<p>Atlas Power Group's strategic expansion in Butte demonstrates the accelerating trend of data center operators seeking locations with reliable, cost-effective power sources. The <b>long-term power agreement</b> provides important price predictability for Atlas' operations while their demand response capabilities create a symbiotic relationship with the grid.</p><p>The facility's flexible load design represents next-generation data center architecture, allowing for dynamic power consumption adjustment during peak demand periods. This approach not only supports grid stability but also optimizes operational costs, potentially improving Atlas' profit margins while contributing to NWE's grid resilience.</p>

BUTTE, Mont.--(BUSINESS WIRE)-- NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) announces plans to provide electric supply service to Altas Power Group at its Butte, Montana data center.

Atlas Power Group is a NorthWestern Energy transmission service customer today.

The new energy supply load is expected to be 75 megawatts beginning in 2026, with forecasted growth of up to another 75 megawatts in the subsequent three to five years.

“NorthWestern Energy’s strategic energy generation resource acquisitions and our balanced energy portfolio enables us to serve new large energy supply customers like Atlas Power Group’s Butte data center while continuing to provide our current customers with affordable and reliable energy,” said NorthWestern Energy President and CEO Brian Bird.

“Atlas welcomes the opportunity to partner with NorthWestern Energy to supply cost-effective and reliable energy and transmission services to our flagship data center in Butte. With expanded growth opportunities on the horizon, securing long-term power supply at predictable prices is critical to support continued expansion and investment in our facilities,” said Atlas Power Group President and COO Jeff Young. “Atlas is also dedicated to maximizing our data center’s demand response capabilities to bolster the reliability and resiliency of the grid for the benefit of NorthWestern Energy’s Montana customer base,” he added.

Earlier this week, NorthWestern Energy announced another agreement to provide energy service for a developer planning new data centers in Montana.

Today, NorthWestern Energy is one of the cleanest energy companies in the nation, with most of the company’s power generation from hydro, wind and solar resources. NorthWestern Energy’s recent addition of on-demand energy generation from the Yellowstone County Generating Station and the anticipated additional capacity from the Colstrip Plant beginning Jan. 1, 2026, strengthens its ability to serve existing and new Montana electric customers reliably at lower customer costs.

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NorthWestern Energy - Delivering a Bright Future

NorthWestern Energy Group, Inc., doing business as NorthWestern Energy, provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. Our operations in Montana and Yellowstone National Park are conducted through our subsidiary, NW Corp, and our operations in South Dakota and Nebraska are conducted through our subsidiary, NWE Public Service. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002.

Atlas Power Group – Optimizing New Energy

Atlas Power Group (“Atlas”) is a specialized infrastructure company focused on developing and growing flexible load data center hosting operations across the U.S. In addition to its operations in Montana, Atlas has established data center hosting facilities in North Dakota, Kentucky, and Texas. These flexible load sites stabilize energy prices by reducing power consumption during peak demand, thereby helping mitigate price spikes. This demand response capability reduces pressure on the electrical grid, promoting a more stable and affordable energy environment. Moreover, Atlas’ data centers contribute to strengthening utility infrastructure by providing investment for necessary upgrades to generation and transmission systems. The company’s operations foster economic development and revitalization in rural and underserved areas by creating high-paying technology jobs and offering hands-on training in advanced technologies and data center management. Through these and other efforts, Atlas not only supports the energy grid but also contributes to local communities’ economic growth and technological advancement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241219840833/en/

Investor Relations Contact:

Travis Meyer (605) 978-2967

travis.meyer@northwestern.com

Media Contact:

Jo Dee Black (866) 622-8081

jodee.black@northwestern.com

Source: NorthWestern Energy Group, Inc.

FAQ

How much power will NWE supply to Atlas Power Group's data center in Butte?

NorthWestern Energy will initially supply 75 megawatts of power starting in 2026, with potential growth of another 75 megawatts in the following 3-5 years.

When will NWE begin power supply to Atlas Power Group's Butte data center?

The power supply service is scheduled to begin in 2026.

How will Atlas Power Group's data center benefit NWE's grid?

The data center will implement demand response capabilities to enhance grid reliability and resiliency for NorthWestern Energy's Montana customer base.

What recent infrastructure additions support NWE's ability to serve the Atlas data center?

The Yellowstone County Generating Station and anticipated capacity from the Colstrip Plant (starting January 2026) will support NWE's ability to serve new customers.

How many data center agreements has NWE recently secured in Montana?

NWE has secured at least two recent data center agreements in Montana, including the Atlas Power Group contract and another agreement with a different data center developer.