Last month, Missoula City Council adopted an ordinance to keep data centers from expanding within city limits. It closed what city staff referred to as a “loophole” by broadening the definition for data centers.
Now, CubCloud AI, founded in Missoula, is suing the city. CEO Joshua Rhines says CubCloud provides a local alternative to out-of-state tech companies. He says the city’s new regulations prevent his business from growing.
Rhines believes the city is trying to restrict much larger data centers. He says he understands the concerns and agrees those should be strictly regulated.
“What I'm trying to do is get the ordinance to recognize that local businesses and smaller-scale businesses are not the same as a large data center. In the same way, I don't think that we would consider Orange Street Food Farm and Walmart in the same category,” Rice told MTPR.
The lawsuit argues the city’s restrictions are too sweeping and violate the state’s Right to Compute Act. That law protects private ownership and use of computing resources, including data centers, and limits government regulation.
In a statement to MTPR Monday, City Attorney Ryan Sudbury said his office plans to “vigorously defend” the City Council’s decision in court. He said the City contends that the Right to Compute Act does not permit data center companies to “locate wherever they please.”
