Three Lesser-Known AI Infrastructure Stocks Driving the Upcoming Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Source: Marketbeat
AI Investment Trends: The focus in AI investment is shifting from major tech companies to the supporting businesses that provide essential resources like land, power, and infrastructure for data centers, indicating a broader understanding of the AI ecosystem.
Prologis and Gladsone Land: Prologis is positioned to become a significant player in the data center market due to its extensive land and power resources, while Gladstone Land Corporation is leveraging its agricultural land investments to benefit from the AI economy.
Black Hills Corporation: Black Hills Corporation is highlighted for its potential in the data center space, particularly in regions like Wyoming, where land and electricity costs are favorable for data center operations.
Market Outlook: Investors are encouraged to consider these infrastructure-related stocks as they may offer substantial returns, especially as the demand for data centers continues to grow in the AI sector.
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Analyst Views on BKH
Wall Street analysts forecast BKH stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 73.090
Low
72.00
Averages
81.00
High
87.00
Current: 73.090
Low
72.00
Averages
81.00
High
87.00
About BKH
Black Hills Corporation is a customer-focused, growth-oriented utility company. It serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Its segments include Electric Utilities and Gas Utilities. Its Electric Utilities segment generates, transmits and distributes electricity to approximately 225,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming. Its Electric Utilities own 1,394 megawatts of generation and 9,196 miles of electric transmission and distribution lines. Its Gas Utilities segment serves over 1,128,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. Its Gas Utilities own and operate 4,648 miles of intrastate gas transmission pipelines and 44,524 miles of gas distribution mains and service lines, seven natural gas storage sites, over 50,000 horsepower of compression, and 516 miles of gathering lines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Defensive Strategies Amid Inflation and Rate Uncertainty in Stock Market
- Dividend Kings Performance: PepsiCo has increased its dividends for 54 consecutive years, currently yielding 3.9%, and its diverse portfolio of beverages and snacks is expected to drive revenue growth, especially as the global snack market is projected to rise from $719 billion in 2024 to $922 billion by 2030.
- Utility Stability: Black Hills, a utility stock, has raised its dividends for 56 years with a current yield of 3.7%, and plans to merge with NorthWestern Energy Group, which would expand its customer base to over 2 million, further solidifying its market position.
- Strong Sales Performance: Colgate-Palmolive reported $5.3 billion in net sales for Q1 2026, marking its fourth consecutive quarter of record sales, and despite facing rising packaging and material costs, its 63-year history of dividend increases demonstrates its resilience to uncertainty.
- Market Defensive Strategies: Amid rising inflation and interest rate uncertainty, investors are leaning towards companies with stable dividends to protect their portfolios, making PepsiCo, Black Hills, and Colgate-Palmolive ideal choices due to their strong dividend records, providing a safety margin during market fluctuations.
See More
Defensive Investments Amid Market Rally Concerns
- Importance of Defensive Investments: Amid current market rally concerns, investors are advised to include defensive assets in their portfolios to mitigate potential downturn risks, ensuring stable returns during economic fluctuations.
- Performance of Dividend Kings: Companies known as 'Dividend Kings', such as PepsiCo (PEP), Black Hills (BKH), and Colgate-Palmolive (CL), have consistently increased dividends for over 50 years, demonstrating strong business resilience and stable cash flows, making them suitable holdings during economic uncertainty.
- PepsiCo's Market Advantage: With a dividend yield of 3.9%, higher than Coca-Cola's 2.6%, PepsiCo's diverse product portfolio, including snacks and beverages, is expected to drive revenue growth in the coming years, particularly as consumers continue to opt for affordable luxuries during economic slowdowns.
- Black Hills' Merger Prospects: Black Hills has increased its dividend for 56 consecutive years, currently yielding 3.7%, and plans to merge with NorthWestern Energy Group, which, if approved, will serve over 2 million customers, further strengthening its market position and revenue stability.
See More
Black Hills Q1 Earnings Miss Expectations
- Disappointing Earnings: Black Hills reported a Q1 Non-GAAP EPS of $1.79, missing expectations by $0.05, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company generated $780.7 million in revenue for Q1, a 3.0% year-over-year decrease, falling short of market expectations by $123.19 million, reflecting challenges in the current economic environment.
- 2026 Earnings Guidance Reaffirmed: Black Hills reaffirmed its adjusted EPS guidance for 2026 to be between $4.25 and $4.45, based on assumptions of normal weather and timely regulatory outcomes, demonstrating confidence in future performance.
- Rising Operating Costs: The company anticipates a 3.5% increase in operations and maintenance expenses off a 2025 base of $580 million, which could pressure profitability amid significant capital expenditures and AI risks.
See More
Black Hills Corp Reaffirms 2026 Earnings Guidance
- Earnings Guidance Reaffirmed: Black Hills Corp reaffirms its adjusted EPS guidance for 2026 in the range of $4.25 to $4.45, excluding merger-related costs, demonstrating confidence in future profitability despite challenges from weather impacts and rising costs.
- New Peak Load Achieved: Wyoming Electric recorded a new winter peak load of 393 MW on January 23, 2026, representing a 4% increase over the previous peak of 379 MW in 2025, reflecting 20 consecutive years of rising electricity demand in the region, thereby enhancing the company's competitive position in the market.
- Merger Progressing Smoothly: The all-stock merger with NorthWestern Energy has received shareholder approval, and constructive settlements have been reached in Montana, South Dakota, and Nebraska, with the transaction expected to close in the second half of 2026, further solidifying its market presence.
- New Project Investments: The company is advancing its 99 MW Lange II generation project, expected to be operational in Q4 2026, while also securing agreements to reserve generation equipment for a 1.8 GW data center project, indicating a proactive approach to large-load project development.
See More
Investment Trends in the Utility Sector
- Rising Electricity Demand: The expected increase in electricity demand is set to drive faster growth in the utility sector, traditionally viewed as stable, thus attracting more investor interest.
- NextEra Energy's Growth Potential: NextEra Energy owns one of the largest utilities in the U.S., with its clean energy division being a global leader in solar and wind production, boasting a historical dividend growth of around 10% over the past decade, though projected to slow to 6%, which remains attractive.
- Stability of Black Hills: As a 'Dividend King', Black Hills offers a 3.7% dividend yield, significantly above the industry average of 2.6%, making it suitable for conservative investors, despite its ongoing merger with NorthWestern Energy pending regulatory approval.
- Divergent Investor Preferences: NextEra Energy is likely a better fit for those seeking dividend growth, while Black Hills is ideal for conservative investors looking for reliable dividend payments, highlighting the varying demands of investment strategies.
See More
Investment Choices in the Utility Sector
- Dividend Growth Potential: NextEra Energy has achieved an impressive annual dividend growth rate of around 10% over the past decade, with expectations of a slowdown to approximately 6% in the coming years, which remains attractive compared to the market average yield of 2.6%, making it appealing for conservative dividend growth investors.
- Black Hills Advantage: As one of only six utilities to achieve Dividend King status, Black Hills offers a relatively attractive 3.7% dividend yield, significantly higher than the industry average, making it suitable for conservative investors seeking stable income.
- Merger Risks: Black Hills is in the process of merging with NorthWestern Energy, with shareholder approval already secured, but it still requires regulatory approval; this merger is expected to enhance the scale and diversification of the combined entity without altering the fundamental nature of their regulated utility businesses.
- Investor Choice Differences: NextEra Energy is likely a better fit for those seeking dividend growth, while Black Hills is the ideal choice for investors looking for reliable dividend-paying utilities, highlighting the significant differences in investment strategies between the two companies.
See More
Defensive Strategies Amid Inflation and Rate Uncertainty in Stock Market
- Dividend Kings Performance: PepsiCo has increased its dividends for 54 consecutive years, currently yielding 3.9%, and its diverse portfolio of beverages and snacks is expected to drive revenue growth, especially as the global snack market is projected to rise from $719 billion in 2024 to $922 billion by 2030.
- Utility Stability: Black Hills, a utility stock, has raised its dividends for 56 years with a current yield of 3.7%, and plans to merge with NorthWestern Energy Group, which would expand its customer base to over 2 million, further solidifying its market position.
- Strong Sales Performance: Colgate-Palmolive reported $5.3 billion in net sales for Q1 2026, marking its fourth consecutive quarter of record sales, and despite facing rising packaging and material costs, its 63-year history of dividend increases demonstrates its resilience to uncertainty.
- Market Defensive Strategies: Amid rising inflation and interest rate uncertainty, investors are leaning towards companies with stable dividends to protect their portfolios, making PepsiCo, Black Hills, and Colgate-Palmolive ideal choices due to their strong dividend records, providing a safety margin during market fluctuations.
See More
Defensive Investments Amid Market Rally Concerns
- Importance of Defensive Investments: Amid current market rally concerns, investors are advised to include defensive assets in their portfolios to mitigate potential downturn risks, ensuring stable returns during economic fluctuations.
- Performance of Dividend Kings: Companies known as 'Dividend Kings', such as PepsiCo (PEP), Black Hills (BKH), and Colgate-Palmolive (CL), have consistently increased dividends for over 50 years, demonstrating strong business resilience and stable cash flows, making them suitable holdings during economic uncertainty.
- PepsiCo's Market Advantage: With a dividend yield of 3.9%, higher than Coca-Cola's 2.6%, PepsiCo's diverse product portfolio, including snacks and beverages, is expected to drive revenue growth in the coming years, particularly as consumers continue to opt for affordable luxuries during economic slowdowns.
- Black Hills' Merger Prospects: Black Hills has increased its dividend for 56 consecutive years, currently yielding 3.7%, and plans to merge with NorthWestern Energy Group, which, if approved, will serve over 2 million customers, further strengthening its market position and revenue stability.
See More
Black Hills Q1 Earnings Miss Expectations
- Disappointing Earnings: Black Hills reported a Q1 Non-GAAP EPS of $1.79, missing expectations by $0.05, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company generated $780.7 million in revenue for Q1, a 3.0% year-over-year decrease, falling short of market expectations by $123.19 million, reflecting challenges in the current economic environment.
- 2026 Earnings Guidance Reaffirmed: Black Hills reaffirmed its adjusted EPS guidance for 2026 to be between $4.25 and $4.45, based on assumptions of normal weather and timely regulatory outcomes, demonstrating confidence in future performance.
- Rising Operating Costs: The company anticipates a 3.5% increase in operations and maintenance expenses off a 2025 base of $580 million, which could pressure profitability amid significant capital expenditures and AI risks.
See More
Black Hills Corp Reaffirms 2026 Earnings Guidance
- Earnings Guidance Reaffirmed: Black Hills Corp reaffirms its adjusted EPS guidance for 2026 in the range of $4.25 to $4.45, excluding merger-related costs, demonstrating confidence in future profitability despite challenges from weather impacts and rising costs.
- New Peak Load Achieved: Wyoming Electric recorded a new winter peak load of 393 MW on January 23, 2026, representing a 4% increase over the previous peak of 379 MW in 2025, reflecting 20 consecutive years of rising electricity demand in the region, thereby enhancing the company's competitive position in the market.
- Merger Progressing Smoothly: The all-stock merger with NorthWestern Energy has received shareholder approval, and constructive settlements have been reached in Montana, South Dakota, and Nebraska, with the transaction expected to close in the second half of 2026, further solidifying its market presence.
- New Project Investments: The company is advancing its 99 MW Lange II generation project, expected to be operational in Q4 2026, while also securing agreements to reserve generation equipment for a 1.8 GW data center project, indicating a proactive approach to large-load project development.
See More
Investment Trends in the Utility Sector
- Rising Electricity Demand: The expected increase in electricity demand is set to drive faster growth in the utility sector, traditionally viewed as stable, thus attracting more investor interest.
- NextEra Energy's Growth Potential: NextEra Energy owns one of the largest utilities in the U.S., with its clean energy division being a global leader in solar and wind production, boasting a historical dividend growth of around 10% over the past decade, though projected to slow to 6%, which remains attractive.
- Stability of Black Hills: As a 'Dividend King', Black Hills offers a 3.7% dividend yield, significantly above the industry average of 2.6%, making it suitable for conservative investors, despite its ongoing merger with NorthWestern Energy pending regulatory approval.
- Divergent Investor Preferences: NextEra Energy is likely a better fit for those seeking dividend growth, while Black Hills is ideal for conservative investors looking for reliable dividend payments, highlighting the varying demands of investment strategies.
See More
Investment Choices in the Utility Sector
- Dividend Growth Potential: NextEra Energy has achieved an impressive annual dividend growth rate of around 10% over the past decade, with expectations of a slowdown to approximately 6% in the coming years, which remains attractive compared to the market average yield of 2.6%, making it appealing for conservative dividend growth investors.
- Black Hills Advantage: As one of only six utilities to achieve Dividend King status, Black Hills offers a relatively attractive 3.7% dividend yield, significantly higher than the industry average, making it suitable for conservative investors seeking stable income.
- Merger Risks: Black Hills is in the process of merging with NorthWestern Energy, with shareholder approval already secured, but it still requires regulatory approval; this merger is expected to enhance the scale and diversification of the combined entity without altering the fundamental nature of their regulated utility businesses.
- Investor Choice Differences: NextEra Energy is likely a better fit for those seeking dividend growth, while Black Hills is the ideal choice for investors looking for reliable dividend-paying utilities, highlighting the significant differences in investment strategies between the two companies.
See More
