NiSource signs power deals with Alphabet and Amazon

NISOURCE INC, a prominent utility provider in the United States, has announced a significant long-term energy supply agreement with a subsidiary of ALPHABET INC-CL A. The deal is designed to power a major new data center located in northern Indiana, with energy deliveries expected to commence in the summer of 2026. In addition to the partnership with Alphabet, NiSource has expanded its existing collaboration with AMAZON.COM INC. This extension aims to accelerate the delivery of electricity to Amazon’s facilities while simultaneously fast-tracking bill credits for residential customers. These moves come as major technology corporations aggressively seek reliable, sustainable energy sources to fuel the expansion of data centers required for artificial intelligence applications. To facilitate these large-scale requirements, NiSource utilizes its GenCo model. This framework leverages dedicated generation assets and market resources to serve high-capacity clients while protecting existing residential and small-business customers from additional costs. The company estimates that the GenCo model will generate approximately $1.25 billion in system-wide savings, translating to a reduction of $90 to $115 annually for the average household. Infrastructure support for these projects will be managed by NIPSCO and the GenCo unit. The plan includes a 340-megawatt portfolio owned by GenCo, which will be bolstered by up to 175 megawatts of seasonal market purchases to ensure consistent supply. The rapid expansion of energy-intensive data centers has drawn scrutiny elsewhere. Recently, lawmakers in Maine voted to pause approvals for new large-scale data centers, citing concerns that such facilities could overwhelm local power grids and drive up costs for individual consumers. NiSource, however, maintains that its model ensures mutual benefit for both industrial users and the local community. > The cost savings announced today expand on the previously announced $1 billion in customer savings with Amazon as we continue to work closely with a broad coalition of stakeholders to bring this GenCo vision to life. NiSource President and CEO Lloyd Yates emphasized that the strategy is part of a broader effort to integrate large-scale technology infrastructure into the existing utility landscape responsibly.