Black Hills Corp to Invest $1.8 Billion for Google’s Wyoming Data Center

Black Hills Corp. (NYSE: BKH) has signed definitive agreements with Google to serve a planned data center in Cheyenne, Wyoming, effective September 30, 2026. The agreements, spanning until 2048, include a Large Power Contract Services Agreement and a Generation Facilities Agreement. Black Hills will invest $1.8 billion to construct 564 MW of company-owned natural gas generation and manage 2.1 GW of third-party contracted resources through a private microgrid.

The project aims to provide up to 590 MW of grid-connected energy service, with revenue from microgrid management fees and generation investments expected to begin contributing to earnings in 2027. By 2030, the project is projected to generate approximately $150 million in net income and deliver $2.4 billion in unlevered free cash flow through 2048, net of capital expenditures.

Linn Evans, president and CEO of Black Hills Corp., emphasized the project's benefits, including job creation, regional infrastructure strengthening, and long-term economic development for Wyoming. The agreements ensure that costs associated with serving the data center do not shift to existing retail customers, providing protections against stranded assets and early termination risks.

Black Hills has already secured regulatory approvals, including a Certificate of Public Convenience and Necessity for the Robinson substation and an air quality permit for the Cheyenne Prairie Generating Station expansion. The company is also advancing transmission plans through additional regulatory filings.