Developers pitch ‘AI factory’ for Bonner mill site; county outlines zoning and renewable-energy rules

Developers from Kram Bu and their contractors outlined plans to convert the Bonner mill site into an "AI factory" data center and described technical steps they say would limit local impacts while creating construction and maintenance work for area trades.

Steve Wood, a representative for Kram Bu, said the team has "submitted our request for up to 3 megawatts" for initial operations and that the power would be procured from the market rather than added to local residential rates. He said any required infrastructure upgrades imposed by the utility would be paid by the developer. "It would have absolutely no effect to your rates," Wood said.

Wood and team members also described an approach to cooling they called closed-loop and said the company has filed for a patent on a "hyper vaporization" technology. "The water consumption is net zero in our data centers," Wood said, adding the system reuses cooling water rather than drawing continuous municipal supply.

Amber Orr, an electrical engineer with the project team, addressed noise concerns and said the proposed water-cooled towers are quieter than older, air-cooled data centers. "We're basically running about 50 to 55 decibels," Orr said, contrasting that with air-cooled setups she said can run 60–85 decibels.

Project managers said construction will create short-term jobs and that local trades—pipefitters, electricians and maintenance staff—are likely to be employed for ongoing operations. Matthew Afana, a project manager with Polar, said prior conversions typically drew many local contractors into sustained maintenance roles.

Missoula County planning staff attended to explain the regulatory framework. Jenny Dickson, a county planner, said the county has not yet received a formal application. She outlined four requirements the county applies to data centers: the facility must be in an industrial zone (the Bonner site is in a heavy industrial zone); the developer must submit an e-waste recycling plan for end-of-life electronics; projects must use "new renewable energy" demonstrating additionality; and projects within 500 feet of residences must go through a special land-use review to address noise, lighting and site design. "We will be working to determine how they meet that requirement," Dickson said regarding renewable-energy compliance.

Dickson also cited county noise standards adopted since 2022 and said residential evening noise levels are measured around 55 decibels as a benchmark for compliance; she emphasized the county regulates fixed mechanical sources such as fans and cooling towers.

County staff and the development team said they will collect written questions from attendees and post answers online for questions not addressed at the meeting. No formal vote or permit decision was made at the session; planning staff said a zoning and land-use review would follow if and when a formal application is filed.