Black Hills signs Google power agreements for up to 590 MW in Wyoming
Black Hills plans US$1.8B of gas generation at Cheyenne Prairie, with energy service for Google's data centre due in late 2027.
Ines Halvorsen
Late 2027 is the scheduled start of grid service under agreements for up to 590 megawatts at Google's planned Wyoming data centre, Black Hills Corp. NYSEBKH said on Oct. 6. Black Hills plans US$1.8 billion in gas generation and expects approximately US$150 million of net income from the project in 2030. The agreements with Google, a wholly owned subsidiary of Alphabet Inc. NASDAQGOOGL NASDAQGOOG, took effect Sept. 30 and run through 2048.
Black Hills shares closed Tuesday at US$70.74 at 4:00:06 p.m. EDT in New York NYSEBKH. The Oct. 6 announcement was posted at 4:10 p.m. EDT, after the regular session ended.
Under the Oct. 6 plan, Black Hills would build 564 megawatts of new natural gas generation at its Cheyenne Prairie Generating Station site between 2027 and 2029. Another 26 megawatts of its planned grid service would come from market purchases and retail utility supply. It would also manage roughly 2.1 gigawatts of Wyoming-based contracted resources through a private microgrid, bringing the anticipated resource mix, including reserves, to about 2.7 gigawatts.
Black Hills expects to earn a return on the generation investment once construction starts in 2027. Negotiated microgrid management fees are expected to begin in late 2027 and rise as contracted demand ramps. Its Oct. 6 release does not disclose a price per megawatt-hour or the management fee rate.
Google has advanced US$399 million for long-lead equipment under an earlier reservation agreement. The advance is refundable, with Black Hills expecting to reimburse it by June 30, 2027. Black Hills plans to finance its US$1.8 billion construction program with project cash flow, debt and other alternatives; its release names no equipment supplier or delivery date.
The company projects approximately US$2.4 billion of unlevered free cash flow through 2048 after the US$1.8 billion generation outlay. It says the generation agreement provides for recovery of the investment over the contract term, backed by early-termination, credit and cost pass-through protections.
"Importantly, these agreements and supporting regulatory mechanisms are structured so that Google bears all costs associated with serving the planned data center throughout the life of the project," Black Hills chief executive Linn Evans said in the Oct. 6 release.
Wyoming Commission Has Transmission Application
The Wyoming Public Service Commission's Sept. 11 notice identifies Cheyenne Light, Fuel and Power's application for a certificate to build a 230-kilovolt substation and new transmission lines. The commission assigns it docket 20003-278-EN-26. Black Hills separately says the Robinson substation's certificate was approved in May 2026 and an air-quality permit in August 2026.
A Wyoming Department of Environmental Quality notice dated July 9 describes a Cheyenne Prairie permit amendment request to raise gas generation capacity from 140 megawatts to 260 megawatts. That notice does not document approval for all 564 megawatts in Black Hills' Oct. 6 construction plan.
An Oct. 6 joint release from Constellation Energy Corporation NASDAQCEG and Google describes a 20-year power purchase agreement for 890 megawatts of nuclear uprates. Constellation expects first uprated output by 2028, while Black Hills' Wyoming agreement targets initial service in late 2027.
Read more: Constellation Energy Corporation signs 20-year Google pact for 890 MW of nuclear uprates
Black Hills plans to file a Wyoming transmission expansion certificate application in the fourth quarter of 2026, according to its Oct. 6 release.
