Analysts raise BKH target after Microsoft secures 3,200 acres in Wyoming for a new data center powered by the utility.
BMO Capital raised its price target on Black Hills Corporation (NYSE:BKH) to $91 from $84, reiterating an Outperform rating. The adjustment follows Microsoft’s purchase of 3,200 acres in Cheyenne, Wyoming, for a data center expected to drive transformational growth for the utility.
Black Hills will supply energy to the facility, part of a 3 GW data center pipeline, including 600 MW by 2030. The company also stands to benefit from Meta Platform’s AI data center projects. First-quarter 2026 adjusted earnings reached $135.1 million, or $1.79 per share, slightly above last year’s $134.3 million, or $1.87 per share.
The deal highlights growing hyperscaler demand in Wyoming, positioning Black Hills as a key energy provider for AI and data infrastructure expansion.