State Law Limits Local Authority on Data Center Regulation in Billings

A new state law, part of the Right to Compute Act, was passed during the 2025 legislative session. The law limits the local regulatory power of Billings regarding data centers. The legislation halts Yellowstone County's ability to enforce local regulations on data center development, though it allows for regulations based on a 'compelling government interest.'

The law, which was challenged by county commissioners, establishes that any local regulations must be approved by the state. The Act allows for local rules concerning actions that defraud the public, harmful deepfakes, or issues related to common law nuisances caused by physical data center infrastructure.