Black Hills Signs 22-Year Google Data Center Deal Worth $2.4B in Free Cash Flow
BKH sits 24% above its 52-week low of $59.91.
Summary
Black Hills signed definitive 22-year agreements to serve Google's planned Cheyenne data center, investing $1.8B in new generation and expecting $2.4B in unlevered free cash flow through 2048.
Key Events · M&A and Partnerships · BKH
-
Definitive Google Data Center Agreements
Black Hills executed definitive agreements effective Sept. 30, 2026, with terms through 2048, to serve Google's planned Cheyenne, Wyoming data center.
-
$1.8B Generation Investment
Black Hills will invest $1.8 billion between 2027 and 2029 to construct 564 MW of company-owned natural gas generation at the existing Cheyenne Prairie Generating Station.
-
Projected Financial Impact
The project is expected to provide approximately $150 million of net income in 2030 and approximately $2.4 billion of unlevered free cash flow through 2048, net of the $1.8 billion capital investment.
-
$399M Refundable Advances from Google
Google has provided $399 million of refundable advances for long lead-time equipment procurement, which Black Hills expects to reimburse by June 30, 2027.
Analysis · BKH · Energy & Transportation
Black Hills has executed definitive agreements to serve Google's planned Cheyenne, Wyoming data center through 2048. The company will invest $1.8 billion in 564 MW of new natural gas generation and manage 2.1 GW of third-party contracted resources through a private microgrid. The project is expected to generate approximately $150 million of net income in 2030 and $2.4 billion of unlevered free cash flow over the contract term, net of capital expenditures. Google has already provided $399 million in refundable advances for equipment procurement. This is a transformative long-term revenue contract for a utility with a $5.4 billion market cap, and it comes amid Black Hills' pending $4.4 billion merger with NorthWestern Energy.
How filings like this one have moved
In the 30 days to Oct 6, 2026, 36.5% of the 1012 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BKH was trading at $74.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $59.91 to $78.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.