Black Hills Corp has signed definitive agreements to serve a planned Google data center in Cheyenne, Wyoming, the utility holding company announced. The agreements, effective September 30, 2026, run through 2048 and include a Large Power Contract Services Agreement and a Generation Facilities Agreement.
Black Hills will provide up to 590 MW of grid-connected energy service to the project, part of a total resource mix of 2.7 GW including reserve margins. The company will also manage roughly 2.1 GW of third-party contracted resources through a private microgrid. To help meet the load, Black Hills plans 564 MW of new company-owned natural gas generation at its Cheyenne Prairie Generating Station, backed by a $1.8 billion capital investment, with the remaining 26 MW coming from market purchases and retail utility service.
Energy service is set to begin in late 2027 and ramp to peak load by 2030, with the new generation construction running from 2027 to 2029. Google will provide $399 million in refundable advances to Black Hills, to be reimbursed by June 30, 2027. Black Hills expects the project to generate approximately $150 million in net income by 2030 and roughly $2.4 billion in unlevered free cash flow through 2048, net of the $1.8 billion generation investment.
"We are pleased to support Google's planned investment in Wyoming," said Linn Evans, president and CEO of Black Hills Corp.
Several regulatory milestones already cleared the way for the project, including a Robinson substation certificate approved in May 2026 and an air quality permit for the Cheyenne Prairie Generating Station expansion approved in August 2026. Black Hills expects to file a related Wyoming transmission expansion certificate in the fourth quarter of 2026.