Black Hills Corp to invest US$1.8 billion for Google data centre power in Wyoming

Black Hills Corp has signed agreements to supply electricity to a proposed Google data centre in Cheyenne, Wyoming, and plans to invest US$1.8 billion from 2027 to 2029 on new generation capacity. The utility will build 564 MW of new capacity and manage a 2.7-GW resource mix, with power deliveries b

Black Hills Corp said on Tuesday it has signed agreements to power a proposed Google data centre in Cheyenne, Wyoming, and plans to spend US$1.8 billion from 2027 to 2029 on new generation capacity, as tech firms race to secure electricity for power-hungry artificial intelligence data centres.

The South Dakota-based utility said it will build 564 megawatts (MW) of new generation capacity for the Cheyenne project, which is expected to draw on a 2.7-gigawatt (GW) resource mix including reserve margins. Power deliveries are set to begin in late 2027, with peak load expected in 2030.

Black Hills will supply up to 590 MW from the grid, mostly from a new gas plant at its Cheyenne Prairie Generating Station, and manage about 2.1 GW of third-party resources in Wyoming through a privately managed microgrid. The utility expects the project to add about US$150 million to its net income by 2030.

The agreement requires Google to cover the full cost of supplying electricity to the data centre, preventing those expenses from being passed on to other utility customers. Separately, Google also signed a 3.59-GW power contract with Constellation Energy, which will invest more than US$4.3 billion in its fleet.

In August last year, Black Hills agreed to merge with NorthWestern Energy in an all-stock deal to create a US$15.4 billion regulated electric and natural gas utility.