Sustainable data center growth – scalable resource stewardship

Data drives innovation — and powering that data responsibly takes partnership. Across the regions we serve, data centers continue expanding to meet global digital demand. At Black Hills Energy, we’re supporting that growth with reliable, cost-effective energy solutions that help customers pursue their long-term sustainability goals.

For hyperscale and enterprise clients, energy availability is essential. Increasingly, so is environmental performance. While data centers manage their own on-site water systems, energy conservation has long been a critical part of how we operate our facilities.

Reducing water intensity in our energy mix

Electric generation technologies vary widely in water needs. While some traditional thermal plants use water for cooling, others — including wind, solar and modern natural gas units — require significantly less. We increase the number of cycles of concentration for cooling water in our cooling tower system so you can save energy, use less water and optimize water treatment chemical costs. We do so to run the facility as efficiently as possible while still maintaining our operational ranges and achieving regulatory water discharge limits.

Many of our electric utility service territories are located in arid regions, making water conservation an important part of how we operate our facilities. To reduce our water consumption, we utilize air-cooled condensing technology at our coal-fired power plants. We have also implemented innovative and protective water management measures at our natural gas combustion plants.

Stewardship beyond generation

Our responsibility extends beyond delivering energy. Across our eight-state service territory, we support programs and partnerships that promote responsible resource use and community resilience, including:

• Community outreach and education initiatives that encourage conservation and sustainable practices.
• Charitable giving that supports environmental programs, volunteerism and community assistance.

In 2024, Black Hills Energy’s total economic impact reached $1.45 billion, including $3.8 million in charitable contributions that supported a range of environmental and community initiatives.

Renewable energy and customer-aligned solutions

Customers looking to incorporate renewable energy into their procurement strategy can do so through flexible options, including:

• Power purchase agreements
• Customized tariffs
• Large Power Contract Service (LPCS) agreements for renewable procurement

These solutions give data centers the ability to match energy purchases with corporate sustainability or ESG objectives.

At Black Hills Energy, we’re more than an energy provider — we’re a strategic partner committed to reliability, resource stewardship and customer success.