Data Centers Fuel Black Hills Energy Growth

Black Hills Corp. announced its second-quarter financial results, reporting adjusted earnings per share of $0.54, an increase from $0.38 in the same period last year. The company also reaffirmed its full-year adjusted earnings per share guidance for 2026, projecting a range of $4.25 to $4.45. This steady financial performance occurs as the company addresses several key initiatives, including a pending acquisition, numerous rate cases, and substantial power demands from data center customers.

Wyoming is a key growth area, with Wyoming Electric experiencing record peak loads, reaching 439 megawatts on July 20, 2026. This marks a 16% increase compared to the previous year, continuing a two-decade trend of rising electricity demand. The company attributes this surge to large-load data center clients, with over 3 gigawatts of potential demand in the pipeline. Financial plans incorporate 600 megawatts from Microsoft's expansion and a new Meta AI data center by 2030.

A separate 1.8-gigawatt data center project in Cheyenne is currently under negotiation. Customer commitment is evident, with advances for generation equipment increasing to $377 million. Incomes from electric utilities have risen due to new rates and recovery from the Ready Wyoming project. Black Hills Corp. also continued its dividend growth, with the board approving a $0.703 quarterly payout, extending a streak of 56 consecutive annual increases.

This expansion comes with increased expenses. Net interest expense rose to $51.6 million, and depreciation climbed to $75.3 million due to new assets and debt funding. Revenue for the year-to-date period slightly decreased to $1,233.5 million from $1,244.2 million, partly due to mild weather. The pending merger with NorthWestern Energy, announced on August 19, 2025, has also impacted results, contributing to merger-related expenses that reduced earnings per share by $0.04 for the quarter and widened the operating loss in the Corporate and Other segment.