Black Hills signs long‑term power contract with Google for Wyoming data center
Black Hills Corp announced definitive agreements effective September 30 2026 to supply electricity to Google's planned data center in Cheyenne, Wyoming. The utility will invest $1.8 billion to build 564 MW of new generation and provide up to 590 MW of grid‑connected service, while managing about 2.1 GW of third‑party resources. The contracts run through 2048 and the company projects $150 million of net income in 2030 and $2.4 billion of unlevered free cash flow over the life of the deal. Analysts responded with upgraded price targets, including BMO Capital to $86 and BofA Securities to $97.
Why it matters
BMO Capital says the deal adds a $1.35 contribution to Black Hills' 2030 outlook and justifies a new price target of $86, implying roughly 13% upside for investors. Analyst upgrades highlight long‑term revenue visibility and cash‑flow generation that could lift the stock.
Key facts
- 1The agreements become effective on September 30 2026 and run through 2048. investorideas.com
- 2Black Hills will invest $1.8 billion between 2027 and 2029 to construct 564 MW of generation. investorideas.com
- 3The project is expected to generate $150 million of net income in 2030. investorideas.com
- 4Unlevered free cash flow is projected at $2.4 billion by 2048. investorideas.com
- 5Up to 590 MW of grid‑connected service will be provided, including 564 MW owned generation. investorideas.com
- 6BMO Capital raised its price target for Black Hills to $86 from $83. investing.com
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.