Microsoft in pact with Black Hills for Wyoming data center

Microsoft (MSFT) announced its intent to purchase 3,200 acres of land to develop a datacenter in Cheyenne, Wyoming. In the announcement, Microsoft states that the company “will pay its way to ensure datacenter development doesn’t increase electricity prices.” The company adds: “Microsoft and Black Hills (BKH) Energy have developed an innovative utility partnership in Wyoming, in which power acquisition is guided by the Large Power Contract Service tariff. The tariff requires Microsoft to directly pay for all the infrastructure upgrades and power procured by the utility necessary to serve its load.” Wes Ashton, Black Hills Energy Vice President of Utilities in Wyoming and South Dakota, stated: “We have been a proud partner with Microsoft for more than a decade in Cheyenne, providing energy solutions and mission-critical electric reliability to its data center operations. That partnership supports economic growth in Wyoming, and our flexible and innovative tariff provisions allow us to meet Microsoft’s expanding energy needs while protecting base retail customers from rate impacts.” In afternoon trading, Black Hills shares are up $3.15, or 4%, to $75.32.