NiSource Inc. (NI) announced a new long-term energy agreement with a subsidiary of Alphabet Inc. to support the development and operation of a large-scale data center in northern Indiana. The deal is expected to deliver benefits to existing customers and local communities while enhancing regional economic development.
This marks the second major agreement utilizing NiSource's NIPSCO Generation LLC (GenCo) model, designed to provide value to system customers while attracting significant investment to Indiana. Service for Alphabet is scheduled to begin in summer 2026, with capacity and energy supplied through a GenCo-owned pooled portfolio of generation assets and market capacity purchases. These assets will also upgrade NIPSCO's transmission system, strengthening grid reliability and resilience.
NiSource also announced an expanded agreement with Amazon Data Services, Inc. Under the updated terms, NiSource will accelerate energization of Amazon sites and deliver associated credits to residential customers sooner. The company said residents will benefit from improved energy service and bill credits as part of its GenCo commitment.
The GenCo model is structured to ensure existing customers benefit directly from new large electric loads. Aggregate cost savings are now projected at approximately $1.25 billion, equating to $90-$115 annually for residential customers. In addition, NiSource will contribute $17 million to a customer fund supporting local communities hosting generation and data center projects.
NIPSCO and GenCo will provide transmission and generation infrastructure to support data centers while coordinating safe and reliable power sourcing. The GenCo-owned portfolio is expected to total about 340 MW, supplemented by seasonal market purchases of up to 175 MW to meet counterparties' requirements.
NiSource Inc. closed at $47.72 on April 16, up $0.35 or 0.74%. In overnight trading at 2:00:23 AM EDT, the stock rose further to $48.60, an increase of $0.88 or 1.84%.
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