Black Hills Corp to invest $1.8 billion to power Google data center

Black Hills Corp has signed agreements with Google to supply electricity to a proposed data center in Cheyenne, Wyoming. The deal, which runs through 2048, aims to support the growing power demands of artificial intelligence.

To fulfill the agreement, Black Hills plans to invest approximately $1.8 billion between 2027 and 2029 to construct 564 megawatts of new natural gas generation capacity at its Cheyenne Prairie Generating Station. The total resource mix for the project is expected to reach 2.7 gigawatts, including reserves and roughly 2.1 gigawatts of third-party resources managed through a private microgrid.

Google will cover the full cost of the electricity supply to ensure that expenses are not passed on to other utility customers. Black Hills expects the project to add about $150 million to its net income by 2030 and generate roughly $2.4 billion in unlevered free cash flow through 2048.

The announcement also impacted NorthWestern Energy Group, which is set to merge with Black Hills in an all-stock deal expected to close by the end of the year. Following the news, NorthWestern Energy shares saw significant gains.