Black Hills signs long‑term contract to power Google’s Wyoming data center
Black Hills Corp. announced definitive agreements to supply power for Google’s planned data center in Cheyenne, Wyoming. The utility will invest $1.8 billion in new natural‑gas generation between 2027 and 2029, delivering up to 590 MW of grid‑connected service and managing about 2.1 GW of third‑party resources via a private microgrid. The contracts run through 2048, with revenue from generation and microgrid fees beginning in late 2027. The company projects $150 million of net income from the project in 2030 and roughly $2.4 billion of unlevered free cash flow through 2048.
Why it matters
The company expects the deal to add about $150 million of net income in 2030 and generate $2.4 billion of unlevered free cash flow through 2048, strengthening its balance sheet and providing long‑term earnings visibility. Analysts note the contract could lift the stock’s price target, with Bank of America raising its target to $97.
Key facts
- 1Black Hills will invest $1.8 billion in new company‑owned natural‑gas generation. globenewswire.com
- 2The project will provide up to 590 MW of grid‑connected energy service. globenewswire.com
- 3Black Hills will manage approximately 2.1 GW of third‑party contracted resources through a private microgrid. globenewswire.com
- 4The agreements are effective Sept. 30, 2026 and run through 2048. globenewswire.com
- 5Revenue from generation and microgrid management fees is scheduled to begin contributing to earnings in late 2027. globenewswire.com
- 6The project is expected to generate about $150 million of net income in 2030. globenewswire.com
Summary written by AlphAI from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.