Black Hills Corp. Executes Definitive Agreements to Serve Google’s Planned Data Center in Cheyenne, Wyoming
Black Hills Corp. (BKH) signed agreements to serve Google's planned data center in Wyoming, investing $1.8B in natural gas generation. The project, starting in 2027, is expected to generate $150M net income by 2030 and $2.4B unlevered free cash flow by 2048. Costs will not shift to existing customers, and the company plans to finance the investment through debt and other options.
How this was made
The 30-second read
Why it matters
The deal secures a multi‑decade revenue stream, improves cash‑flow visibility, and may enhance the company's credit profile, likely supporting the stock.
Market read
A sizable, long‑term power contract with a tech giant could lift BKH's valuation and signal further utility‑tech collaborations.
What to watch
Potential exposure to natural‑gas price volatility and future carbon‑regulation impacts.
Background
The announcement marks Black Hills' first major contract to serve a hyperscale data center, aligning with the broader trend of utilities partnering with tech firms for high‑density power loads.
Ticker impact
Black Hills Corp. announced definitive agreements to supply power to Google's planned data center, a $1.8 bn investment with $150 m net income expected in 2030.
upward pressure as investors price in the $2.4 bn unlevered free cash flow through 2048.
The contract provides fixed, inflation‑linked fees and full cost recovery, reducing earnings volatility and supporting credit metrics.
Market effects
Utility and energy infrastructure sector may see increased interest in long‑term power contracts for data centers.
Wyoming power market could tighten, benefiting regional transmission and generation assets.
Highlights growing demand for reliable power supply to large‑scale cloud infrastructure.
Counterpoint
If the project faces regulatory delays or cost overruns, the long‑term upside could be muted.
Key entities
- CompanyBlack Hills Corp.
U.S. utility company (NYSE:BKH) providing natural gas and electric service.
- CompanyGoogle
Parent of Alphabet Inc., planning a new data center in Cheyenne, Wyoming.
