Black Hills Corp has announced a significant agreement to power a new Google data center in Cheyenne, Wyoming. The company plans to invest $1.8 billion between 2027 and 2029 to develop 564 megawatts (MW) of new generation capacity for this project. This center will rely on a mix of resources totaling 2.7 gigawatts (GW), with power deliveries commencing in late 2027 and reaching peak load around 2030.
Specifically, Black Hills will supply up to 590 MW from the grid, primarily from a new gas plant at the Cheyenne Prairie Generating Station, and will manage approximately 2.1 GW of third-party resources in Wyoming via a privately managed microgrid. The project is expected to enhance Black Hills’ net income by around $150 million by 2030.
An important aspect of the agreement stipulates that Google will bear the entire cost of the electricity for the data center, ensuring that these expenses will not be transferred to other utility customers. Additionally, Google has entered into a separate power contract with Constellation Energy for 3.59 GW, with Constellation planning a $4.3 billion investment in its fleet.
Earlier, Black Hills Corp had also revealed plans to merge with NorthWestern Energy, creating a combined utility valued at $15.4 billion.
