Black Hills Corp and NorthWestern Energy have announced a $15.4 billion merger aimed at meeting rising energy demands, particularly from the rapid growth of data centers across the region. The two companies, which together serve more than 2.1 million customers across ten states and Yellowstone National Park, will combine their operations under a new entity headquartered in Rapid City, South Dakota.
Company leaders say the merger is not a buyout but a strategic union designed to strengthen infrastructure and better serve both residential and commercial customers. Brian Bird, CEO of NorthWestern Energy, will lead the merged company, while Black Hills CEO Linn Evans will retire. Although the merger is not expected to create new jobs in Rapid City, some duplicated roles may be phased out through attrition.
The deal still requires federal, shareholder, and regulatory approval and is expected to close within 12 to 15 months. Black Hills shareholders will hold a 56 percent majority in the new company, with NorthWestern shareholders owning the remaining 44 percent. A new board of directors will be formed, consisting of eleven members—six from Black Hills.
Executives emphasized that the growing presence of data centers is a key driver behind the merger. These facilities consume large amounts of energy but also contribute to infrastructure investment, which benefits all customers. Recent proposals for major data centers in Deuel and Minnehaha counties in South Dakota highlight the urgency of expanding energy capacity.
A new name for the merged company has not yet been announced.
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