NiSource Expands Microsoft Power Deal to Deliver $1.75 Billion in Projected Customer Savings
NiSource Inc. (NI) has finalized a 20-year energy agreement with Microsoft Corporation (MSFT) to supply electricity to a planned data center campus in northwest Indiana starting in 2028. Under the arrangement, NiSource Generation Company will add roughly 1,100 megawatts of generation resources to serve Microsoft's data center along with utility customers of Northern Indiana Public Service Company.
The deal increases projected lifetime savings for local electric customers to approximately $1.75 billion, up from a previous estimate of $1.4 billion. This translates to potential annual savings of as much as $140 per customer. Microsoft will fully fund the required generation and transmission infrastructure, which is also designed to upgrade the regional electric transmission system and enhance grid reliability. Additionally, the resource pool includes 600 megawatts of battery storage being developed by an affiliate of AGP Group.
NiSource plans to present additional operational and financial details on the deal during its third-quarter earnings presentation scheduled for October 28, 2026. Consensus expectations project earnings of approximately $0.25 per share on revenue of $1.36 billion.
Key points
- NiSource Inc. (NI) reached a 20-year power deal with Microsoft Corporation (MSFT) for a new northwest Indiana data center campus starting in 2028.
- The agreement adds roughly 1,100 megawatts of generation capacity and raises expected lifetime customer savings to $1.75 billion.
- Microsoft is fully funding all generation and transmission infrastructure required to power the facility.
- NiSource will provide further operational details during its third-quarter earnings call on October 28, 2026.
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What is the new agreement between NiSource and Microsoft?
NiSource Inc. signed a 20-year energy deal to supply approximately 1,100 megawatts of generation capacity to Microsoft Corporation's planned data center campus in northwest Indiana beginning in 2028.
How much will NiSource customers save from the Microsoft deal?
Projected lifetime savings for Northern Indiana Public Service Company electric customers are expected to reach approximately $1.75 billion, or up to $140 per customer annually.
Who is paying for the infrastructure required for Microsoft's data center?
Microsoft is fully funding the generation and transmission infrastructure needed to serve its electricity demand.