Black Hills Approaches Key Milestone as Data-Center Demand Shapes Strategy

Black Hills Corp. is navigating a pivotal period as it accelerates initiatives to meet the growing needs of data centers while the planned merger with NorthWestern Energy moves toward a vote and potential closing. Shareholders are set to decide on the deal on April 2, 2026, in special sessions. If regulatory reviews proceed smoothly, the transaction could be completed in the second half of 2026.

In parallel with the merger progress, the utility is advancing plans to capitalize on the surge in data-center demand. Black Hills is developing a broad portfolio of projects designed to serve a future pipeline of commercial customers in this space, which could become a meaningful new source of revenue.

The NorthWestern Energy merger remains the central strategic initiative for Black Hills. The transaction is currently undergoing the necessary regulatory scrutiny, with the April 2, 2026 shareholder vote representing a critical milestone. A favorable outcome could pave the way for closing in the latter half of 2026, assuming approvals align with the timetable.

Should investors sell immediately? Or is it worth buying Black Hills?

Growth strategy centered on data centers

A key growth driver for Black Hills is the rapidly expanding electricity demand from data centers. The company is formulating concepts to support a substantial pipeline of future orders from these specialized commercial clients, aiming to position them as a core revenue stream in the years ahead.

Regulatory backdrop and dividend policy

A stable framework remains a hallmark of Black Hills’ financial model, relying on regulator-approved tariffs to finance infrastructure investments. In Nebraska, new natural gas supply rates took effect on January 1, 2026, a change intended to help cover costs associated with large projects, including the already completed Ready Wyoming transmission line.

For income-focused investors, the dividend policy continues to be a central consideration. The quarterly distribution has been increased to $0.703 per share, marking the 56th consecutive increase. Looking ahead, the next dividend has a record date of February 17, 2026, with payment scheduled for March 1, 2026.

Key dates to watch

• April 2, 2026: Shareholder vote on the proposed merger with NorthWestern Energy (special sessions).
• January 1, 2026: Nebraska natural gas supply rate changes take effect (context for regulatory backdrop).
• February 17, 2026: Record date for the upcoming dividend.
• March 1, 2026: Dividend payment date.
• Second half of 2026: Potential closing window for the NorthWestern Energy merger, pending regulatory approvals.