Custer County
Pro-Data Center Policies
Montana limits government restrictions on lawful computing unless narrowly justified, while allowing action against nuisances and requiring risk plans for certain AI-controlled critical infrastructure. Qualifying large data centers receive favorable property-tax treatment, with some limits on power sales and infrastructure tax benefits.
Rating and summary from Montana statewide as there are no scored current or future laws outside temporary restrictions for Custer County.
Specific to Custer County only.
pending · Zoned areas in unincorporated Custer County within the existing zoning-map areaRequires data centers in Custer County’s unincorporated industrial zones to get special approval and meet rules for noise, water use, environmental impacts, emergency planning, and eventual shutdown.Custer County Zoning Regulations – Section 4.7 Data Centers and Digital Asset Mining (2026 public-review draft)
What this means
The draft allows data centers in industrial zones, but requires conditional-use approval and a 500-foot buffer from residential areas. Capacity and emergency planning, impact reviews, and a decommissioning plan backed by financial security would create significant hurdles for new or expanding facilities.
People behind it
- Custer County Commission
Completed the updated draft, is seeking public input, adopts the zoning regulations, and may initiate amendments by motion.
- Zoning Administrator
Administers, interprets, and enforces the zoning regulations.
Restrictions & requirementsHide restrictions & requirements16
Data centers require a conditional use permit in the I-1 Industrial district; the use table does not list them as permitted in other districts.
Before construction or expansion, data centers are subject to site plan and zoning-conformance review. Site plan applications require a fee and specified materials, and the Zoning Administrator may request additional information.
A conditional use permit requires a pre-application meeting, an application and fee, staff review, and a public hearing. The hearing must be publicly noticed at least 15 days in advance, and the Board must decide within 15 calendar days after the hearing.
Conditional-use applications must identify property owners within 150 feet of the site, and staff must notify adjoining owners.
A conditional use permit may not be issued if there are existing regulatory violations or delinquent county taxes.
I-1 dimensional standards require at least a 7,000-square-foot lot and 70-foot lot width, with 20-foot front and side-corner setbacks and 10-foot side and rear setbacks. The height limit is 40 feet by right or 60 feet with a conditional use permit.
Data centers must be at least 500 feet from a residential zoning district. When adjacent to existing residential development, structures must be at least 500 feet from the common property line, and parking must be at least 50 feet away and screened.
Facades longer than 150 linear feet must include features to reduce visual impact, and the main entrance must be differentiated from the adjoining facade and project from or be recessed into it.
Operations may not produce noise, fumes, vibration, or light more objectionable to nearby properties than a permitted use. Adjacent to existing residences, noise is limited to 55 decibels at the common boundary; generator testing is allowed only from 10 a.m. to 5 p.m., and generators may be used only for backup or emergencies.
Applicants must demonstrate local capacity for services, including water, wastewater, transportation, and emergency response.
Applications must include an Emergency Services Plan, a draft Community Benefit Agreement addressing impacts and mitigation, and a qualified third-party assessment of potential impacts, including to communications systems and emergency services.
Data centers must demonstrate no adverse impact on environmentally or agriculturally important areas, including water availability and quality. The Zoning Administrator may require a Water Balance Study or similar report based on estimated peak water use.
Ground-level and rooftop mechanical equipment and refuse areas must be screened on all sides. Loading bays must be on one side of the building and screened from ground-level view from adjacent parcels and existing or planned public roads; additional screening or landscaping may be required.
A decommissioning plan is required and must be updated every five years after operations begin. Decommissioning must be completed within 24 months after operations end, including removal of structures, foundations, and equipment and restoration of the land; a surety bond or equivalent approved by the County Commission must secure the work.
Parking requirements are calculated for the portion of a data center used as office space.
Data centers must comply with countywide outdoor-lighting standards, including full-cutoff fixtures for commercial and industrial uses and extinguishing nonessential exterior lighting from 10 p.m. to 7 a.m., subject to listed exemptions. Applications must also include a lighting plan.
Benefits & exceptionsHide benefits & exceptions5
Hyperscale data centers may seek conditional-use approval in the I-1 Industrial district; computing infrastructure and data-processing services are also listed as conditional uses there. Hyperscale data centers may be permitted by conditional use
Applications have defined review deadlines: officials must determine site-plan completeness within five working days and, after an application is complete, decide within 30 working days unless the applicant agrees to an extension. For conditional uses, the Board of Adjustment must decide within 15 calendar days after the public hearing. A decision shall be made within 30 working days.
Parking requirements for a data center are based only on the portion used for office space. Parking requirements shall be established for the portion
Digital-asset mining that meets the cited statutory definition is permitted at any residence. Permitted at any residence
A lawful digital-asset-mining use already in place when the regulations take effect may continue as a nonconforming use. Expansion into unoccupied areas or other buildings is allowed only if it complies with the regulations, and discontinuing the use for one year ends its nonconforming status. A lawful digital asset mining use existing
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