BKH Shares Soar 13.5% on Scotiabank Outperform Upgrade, Data Center Growth Hype

The share price rose to its highest level so far this month today, with an intraday gain of 1.25%.

Black Hills Corporation (BKH) has surged 13.50% over seven trading days, driven by a strategic upgrade from Scotiabank to “Outperform” and a raised price target to $81. The firm highlighted the company’s high-probability data center growth in Wyoming, particularly the 1.8+GW Crusoe/Tallgrass project, which could deliver a 35% earnings boost. This aligns with rising demand for energy infrastructure from tech giants like Microsoft and Meta, which are expanding AI and cloud operations. BKH’s five-year roadmap aims to secure 500 MW of data center demand by 2029, leveraging partnerships and expanding its load pipeline from 1 GW to 3 GW.

The stock’s momentum reflects confidence in BKH’s ability to monetize its energy infrastructure through innovative tariffs tailored to data center operators. These structures optimize revenue by addressing high-capacity, low-latency power needs, while new transmission and generation projects ensure scalability. Analysts note that even if a pending “merger of equals” falters, BKH’s growth drivers—particularly its data center projects—remain robust, limiting downside risk. The company’s disciplined capital allocation and strong balance sheet further support its risk/return profile, making it a focal point for investors seeking exposure to energy-as-a-service trends.