- New cost savings expand to approximately $1.25 billion for existing customers
- Investment fuels economic growth – creating jobs, expanding the tax base, and building a skilled workforce to support long-term innovation and prosperity.
- Agreements strengthen Indiana’s leadership and collaboration with large technology leaders.
MERRILLVILLE, Ind. – NiSource Inc. (NYSE: NI) announced today a new long-term energy agreement with a subsidiary of Alphabet Inc. that will support the development and operation of a large-scale data center in northern Indiana while providing meaningful benefits to existing customers and local communities.
This marks the second major agreement to leverage NiSource’s innovative solution, NIPSCO Generation LLC (GenCo), which is designed to deliver value to existing system customers while attracting significant economic development to Indiana.
“Our strategy is centered on protecting our customers from cost increases associated with these projects while supporting responsible growth in Indiana,” said NiSource President and CEO Lloyd Yates. “Our broadened collaboration with our technology partners reflects our dedication to delivering reliable energy solutions without compromising customer value.”
Agreement Details
Under the contract, service for Alphabet is expected to begin summer 2026. Capacity and energy will be supplied utilizing a GenCo-owned pooled portfolio of electric generation assets for large-load customers and securing market capacity purchases.
These assets will upgrade NIPSCO’s electric transmission system, improving grid reliability and resilience for customers and the state of Indiana.
Expanded Agreement with Amazon
NiSource also announced an expanded agreement with Amazon Data Services, Inc. Under the updated agreement, NiSource is accelerating the energization of Amazon sites and associated credits for residential customers.
Residents will benefit from cost savings and earlier access to improved energy service and bill credits as part of NiSource’s commitment to delivering value through the GenCo model.
GenCo Model Enhances Customer Value
The GenCo model ensures existing customers benefit directly from new large electric loads, with total cost savings expected to reach approximately $1.25 billion, equating to about $90–$115 annually for residential customers.
Additionally, NiSource will contribute $17 million to local communities hosting generation and data center development through a dedicated customer fund.
The GenCo-owned portfolio is expected to total approximately 340 MW, supplemented by seasonal market purchases of up to 175 MW.
By leveraging advanced battery solutions and market resources, GenCo enables faster deployment timelines while increasing system capacity and customer benefits.
Further details will be shared during the company’s first-quarter earnings call.
“This is a win for the state, our customers, and our shareholders—and positions NiSource as a continued leader in the utility sector,” said Yates.
Additional Information
More details are available at:
- www.nisource.com
- www.nipscogenco.com
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states.
The company’s mission is to deliver safe, reliable energy that drives value to customers. NiSource is recognized for sustainability leadership and inclusion on major employer and diversity rankings.
Contact Information
Media: media@nisource.com
Investors: investors@nisource.com
Forward-Looking Statements
This press release contains forward-looking statements subject to risks and uncertainties, including regulatory approvals, construction timelines, financing conditions, customer performance, and broader economic factors.
Actual results may differ materially from projections. NiSource undertakes no obligation to update these statements except as required by law.
