Black Hills stock surges 5% on $1.8B Google data center deal

Black Hills Corporation's stock surged 5% in after-hours trading following the announcement of a definitive agreement to serve a planned Google data center in Cheyenne, Wyoming. The utility company will invest $1.8 billion in new natural gas generation between 2027 and 2029 to support the project, providing up to 590 megawatts of grid-connected energy service and managing 2.1 gigawatts of third-party contracted resources through a private microgrid.

The project is expected to generate approximately $2.4 billion of unlevered free cash flow through 2048, with Black Hills expecting to begin earning a return on its generation investment when construction starts in 2027.

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