Black Hills said definitive agreements effective Sept. 30 will serve a planned Google data center in Cheyenne. The utility plans to invest $1.8 billion in 564 megawatts of new generation from 2027 to 2029.
Black Hills Corp. said on Tuesday it has signed definitive agreements, effective Sept. 30, 2026, and running through 2048, to serve a planned Google data center in Cheyenne, Wyoming. The agreements are a Large Power Contract Services Agreement and a Generation Facilities Agreement, the company said in an SEC exhibit.
Exclusive of extra transmission investment, the project is planned around a 2.7 gigawatt resource mix including reserve margins. Energy service is planned to begin in late 2027 and reach peak load in 2030. Black Hills will provide up to 590 megawatts of grid-connected service and manage about 2.1 gigawatts of Wyoming third-party resources through a private microgrid.
To support that, the company plans to invest $1.8 billion between 2027 and 2029 to build 564 megawatts of company-owned generation, mostly a new gas plant at Cheyenne Prairie Generating Station, Reuters reported. Black Hills said it expects to begin earning a return when construction starts in 2027 and projects about $2.4 billion of unlevered free cash flow through 2048, net of the capital spending.
Reuters said the agreement requires Google to cover the full cost of supplying the data center so those expenses are not passed to other customers, and that the utility expects about $150 million of added net income by 2030. The data center itself is still planned, not operating.
Separately, Reuters said Google signed a 3.59 gigawatt contract with Constellation Energy. That is a different supply deal from the Cheyenne agreements.