Black Hills Plans $1.8B Gas-Power Build for Google Data Center

Black Hills Corp. plans to invest $1.8 billion in gas-fired generation to supply Google’s planned data center in Cheyenne, Wyoming, under agreements the utility expects to generate about $150 million in net income in 2030.

The contracts, announced Oct. 6, run through 2048. Black Hills plans 564 megawatts of new generation, with spending scheduled for 2027–2029. Electricity service would begin in late 2027 and reach peak demand in 2030.

Black Hills would supply up to 590 megawatts through grid-connected service and manage 2.1 gigawatts of third-party resources through a private microgrid. The combined 2.7-gigawatt resource mix includes reserves. Google has advanced $399 million for equipment, repayable by June 30, 2027.

The company projects $2.4 billion in unlevered free cash flow through 2048 after generation investment. It says the contracts protect existing customers against cost transfers and provide capital-recovery, termination and credit safeguards.

The agreement follows months of negotiations over a project Black Hills previously described as a 1.8-gigawatt data center. In June, the utility said developer Crusoe had withdrawn and that it was working directly with the prospective customer. At that time, service was expected to begin in early 2028.

The project offers growth beyond the utility’s earlier financial plan. In August, Black Hills said that plan included 600 megawatts of data-center demand by 2030, driven by Microsoft’s expansion and Meta’s new facility. The separate 1.8-gigawatt development was additional to that forecast.

The campus also faces local scrutiny. Wyoming Public Media reported in September that Google presented plans for the development, called Project Tembo, eight miles south of Cheyenne. Residents raised concerns about nearby development and roads; the project remained under local review at the time.