Black Hills Secures 1.8 GW Data Center Project with $201M Customer Contribution, Reaffirms Guidance
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Black Hills Corp. reported first-quarter 2026 adjusted EPS of $1.79, a slight decrease from $1.87 in the prior year, primarily due to weather impacts and higher financing costs, partially offset by new rates. Despite the Q1 dip, the company reaffirmed its full-year 2026 earnings guidance, signaling confidence in its operational performance and strategic initiatives. Most notably, Black Hills announced significant progress on its data center growth pipeline, including an agreement for a 1.8 GW data center project where a prospective customer has provided $201 million in refundable contributions for generation equipment. This represents a highly material future load addition and capital investment for the utility. Additionally, the company provided updates on its merger with NorthWestern Energy (NWE), confirming shareholder approval and the completion of the Hart-Scott-Rodino Act waiting period, with regulatory approvals progressing towards an expected second-half 2026 close. This news provides a strong positive outlook for BKH's long-term growth trajectory, driven by both strategic M&A and substantial new data center demand. Traders should monitor the final regulatory approvals for the merger and further definitive agreements for the data center projects.
At the time of this announcement, BKH was trading at $73.92 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $55.49 to $78.69. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.