Black Hills Stock Surges After Long-Term Data Center Deal With Alphabet
Shares of Black Hills Corporation (BKH) surged by as much as 10.2% in early trading on Wednesday and closed up 7.2%. The stock's rise was driven by a long-term agreement with Alphabet to supply energy for a planned data center in Cheyenne, Wyoming. The deal involves providing up to 590 megawatts of grid-connected energy through company-owned generation and managing an additional 2.1 gigawatts via third-party contracts using a microgrid. Black Hills will invest $1.8 billion in gas infrastructure for the project, which is expected to generate significant net income starting in 2030. Analysts responded positively; Matvey Tayts of Freedom Brokers upgraded BKH stock from hold to buy and raised his price target. The agreement reduces risk by shifting much responsibility onto Alphabet, offering a major win for Black Hills shareholders.
