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Black Hills Corp. says it will invest $1.8 billion from 2027 to 2029 in new natural-gas generation and related energy arrangements to serve Google’s planned data center in Cheyenne, Wyoming. The definitive agreements have terms through 2048, but the facility and service timeline remain plans, not completed projects.

What Black Hills announced

In an October 6, 2026 announcement, Black Hills said it had signed definitive agreements effective September 30 to serve Google’s planned Cheyenne data center. The agreements comprise a Large Power Contract Services Agreement and a Generation Facilities Agreement, with terms through 2048.

The announcement identifies Google as the planned customer. In a June 10, 2026 update, Black Hills said Crusoe was no longer the development partner and that it was working directly with the potential large-load customer. The October release subsequently named Google and reported definitive agreements. These are Black Hills statements; the cited material does not establish a separate Google confirmation.

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How the power figures fit together

The announced figures describe different parts of a planned resource arrangement. They should not be read as equivalent measures of the data center’s load or of new utility-owned generation.

Figure What Black Hills says it represents
1.8 GW The planned data-center load, as described in the announcement.
$1.8 billion Black Hills’ planned investment in generation from 2027 through 2029.
564 MW Nameplate capacity of planned company-owned natural-gas generation.
Up to 590 MW Planned grid-connected energy service from company-owned generation and market energy.
About 2.1 GW Wyoming-based third-party contracted resources Black Hills plans to manage through a privately managed microgrid.
26 MW Market energy purchases and retail utility service under the applicable industrial tariff, as identified in the release.
2.7 GW The anticipated total resource mix, including reserve margins.

These are Black Hills’ descriptions of a resource plan, not a simple capacity equation: the company-owned generation, grid-connected service, managed third-party resources and reserve margins have distinct roles. The release does not say that all 2.7 GW is new Black Hills generation.

When service is expected to begin

Black Hills says service is planned to start in late 2027 and ramp to peak load in 2030. That schedule depends on construction, project development, financing, regulatory approvals and the agreements’ conditions being met. It is a forecast, not evidence that the data center will begin operating on those dates.

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What Black Hills forecasts financially

Black Hills projects approximately $150 million of net income in 2030 and approximately $2.4 billion in unlevered free cash flow through 2048, net of the $1.8 billion generation capital expenditure. The company says it expects to begin earning a return on generation investment when construction starts in 2027, with microgrid-management fee revenue anticipated from late 2027. These are company projections, not realized results.

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The company says it expects to finance the investment through project cash flow, debt and other financing alternatives. The announcement does not establish a final financing mix.

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Who pays for the project?

Black Hills says the agreements and supporting regulatory mechanisms are structured so Google bears all costs associated with serving the planned data center throughout the project’s life, without shifting those costs to existing retail customers. That is the company’s stated arrangement; the announcement does not independently verify how future costs will be allocated or implemented.

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What approvals and risks remain

Black Hills reported several permitting and transmission milestones, while also identifying approvals and other conditions as risks to its plans.

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  • The Robinson substation Certificate of Public Convenience and Necessity was approved in May 2026.
  • An industrial siting permit for the Cheyenne Prairie Generating Station expansion was filed in July, and an air-quality permit for the expansion was approved in August.
  • A Large Customer Transmission Cost Adjustment Mechanism filing was made in June, and a South Cheyenne Transmission Expansion certificate filing was made in September.
  • A Wyoming transmission-expansion certificate filing was planned for the fourth quarter of 2026.

Those reported milestones do not mean every approval is complete. Black Hills lists regulatory approvals, contract conditions and termination rights, counterparty performance, project development, financing and operations among the risks that could affect its expectations.

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