Black Hills Corp. to Build $1.8 Billion Energy Project for Google

Black Hills Corp. entered into definitive agreements to provide energy services for a planned Google data center in Cheyenne, Wyoming. The utility company will invest $1.8 billion between 2027 and 2029 to construct 564 MW of new natural gas generation at the Cheyenne Prairie Generating Station.

Under the terms of the deal, Black Hills Corp. will provide up to 590 MW of grid-connected energy and manage a private microgrid featuring 2.1 GW of third-party contracted resources. Google has provided $399 million in refundable advances to assist with equipment procurement. The project is expected to begin taking energy service in late 2027 and reach peak load by 2030.

Financial projections for the utility include $150 million in net income by 2030 and $2.4 billion in unlevered free cash flow through 2048. CEO Linn Evans stated that the agreements are structured so that Google bears all costs associated with the data center, ensuring no cost shifting to existing retail customers.