Conflicting Signals: Analyzing Data Center Growth and Capital Expenditure in Recent Earnings Calls

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Financial Performance and Growth:
- Black Hills Corporation reported new margins of $0.29 per share for Q1 2025, driven by $0.26 of new rates and rider recovery, and $0.03 of customer growth and usage.
- This growth was supported by successful implementation of new rates, rider mechanisms, and strong customer growth across regions.

Data Center Demand and Expansion:
- The company expects approximately 500 megawatts of data center demand by the end of 2029, with EPS contribution from data centers doubling to more than 10% of total EPS in 2028.
- This is attributed to the ideal attributes of Cheyenne, Wyoming, including reliable electricity, economic incentives, plentiful renewable generation opportunities, and favorable weather conditions.

Capital Investment and Infrastructure:
- Black Hills plans to invest $4.7 billion over the 5-year period through 2029, prioritizing safety, system integrity, modernization, and infrastructure expansion.
- The capital plan is driven by the need to support growing demands and enhance system reliability, with significant projects like the $350 million Ready Wyoming transmission expansion underway.