Black Hills Corporation announced on October 6, 2026, that it has signed definitive agreements to serve a planned Google data center in Cheyenne, Wyoming. The agreements, effective September 30, 2026, include a Large Power Contract Services Agreement (LPCSA) and a Generation Facilities Agreement (GFA), with terms extending through 2048.
Under the terms of the agreements, Black Hills plans to invest $1.8 billion between 2027 and 2029 to construct 564 MW of new natural gas generation located at its existing Cheyenne Prairie Generating Station. This investment is intended to provide up to 590 MW of grid-connected energy service to the project. Additionally, the company will manage approximately 2.1 GW of third-party contracted resources through a privately managed microgrid.
Black Hills expects the project to begin taking energy service in late 2027 and ramp to peak load by 2030. The company anticipates the project will provide approximately $150 million of net income in 2030 and generate approximately $2.4 billion of unlevered free cash flow through 2048, net of the $1.8 billion capital investment.
The company stated that the agreements are structured to ensure costs associated with serving the data center do not shift to existing retail customers. Google has provided Black Hills with $399 million of refundable advances for the procurement of long lead-time equipment, which the company expects to reimburse by June 30, 2027.
To support the project, Black Hills has completed or commenced several regulatory matters, including the approval of the Robinson substation Certificate of Public Convenience and Necessity in May 2026, the filing of an Industrial siting permit for CPGS expansion in July 2026, and the approval of an Air quality permit for CPGS expansion in August 2026.
