Black Hills Energy partners with Meta to power new data center in Wyoming

In July 2024, we announced an exciting partnership with Meta to provide power for its newest data center in Cheyenne, Wyoming. This area is served by our electric utility, Cheyenne Light, Fuel & Power Company, doing business as Black Hills Energy.

Black Hills Energy has been a key player in providing energy solutions and mission-critical electric reliability for data center expansion in Wyoming for over a decade. Linn Evans, president and CEO, emphasized our readiness to support Meta’s data center operations with customized energy resources that align with Meta’s sustainability objectives. “With our innovative service model and industry-leading reliability, we stand ready to serve Meta with customized energy resources essential to their data center operations and in line with their sustainability objectives,” said Evans.

Our energy procurement model is uniquely designed to meet the specific needs of our Wyoming data center customers. This model is enabled by the Large Power Contract Service tariff, which has been in place since 2016 and was developed in partnership with one of our early data center customers. This tariff positions us well to handle the growing industrial and data center load while protecting other customers from risks associated with large-scale capacity additions and rate impacts.

Evans highlighted the value that this capital-light service model brings to customers, communities, and shareholders, which is integral to our long-term growth strategy. Currently, our data center business contributes 5% of our earnings per share, with an expectation to reach approximately 10% over the next five years.

As Wyoming continues its efforts to diversify its economy by attracting new industries, we remain committed to providing the essential energy services required for such growth. This partnership with Meta is a significant step in that direction, showcasing our dedication to supporting economic development within the state.