Black Hills Utility Favored for 3.8% Yield as AI Data Centers Expand into Wyoming
Black Hills Corporation, a utility operating in Wyoming, yields about 3.8% and has increased its dividend annually since 1971, positioning it to benefit from data center migrations into low-cost power regions. Management expects AI-related demand growth to become apparent in 2026 as new hyperscale campuses come online.
1. Black Hills Positioned for AI Data Center Demand
Black Hills Corporation, an electric utility with natural gas operations, serves Wyoming and adjacent regions where land availability and low electricity costs are attracting data center developers. Management highlights its regional footprint and power capacity as ideal for hyperscalers seeking to build AI infrastructure in cost-effective locations.
2. Stable Income Profile with Long-Term Dividend Growth
The utility yields about 3.8% and has raised its dividend every year since 1971, offering investors consistent income and defensive exposure. Management anticipates that AI-related demand growth will become visible in 2026 as new data center campuses come online, reinforcing a durable demand outlook.