NiSource has committed to a new long-term energy agreement with a subsidiary of Alphabet to support development and operation of a large-scale data center in northern Indiana while providing benefits to customers and communities.
This marks the second major agreement leveraging NiSource’s NIPSCO Generation LLC GenCo model, designed to deliver value to existing customers while attracting economic development to Indiana.
“Our strategy focuses on protecting customers from project-related cost increases while supporting responsible growth and reliable energy solutions,” said NiSource CEO Lloyd Yates.
Service for Alphabet is expected to begin in summer 2026, with capacity supplied through a GenCo-owned portfolio and market purchases, enhancing transmission, reliability and resilience.
NiSource also expanded its agreement with Amazon Data Services, accelerating site energization and residential bill credits.
The GenCo model is expected to deliver about $1.25 billion in customer savings – roughly $90-$115 annually per household.
Additionally, NiSource will contribute $17 million to community funds supporting hosting areas.
Generation assets totaling about 340 MW, plus up to 175 MW in seasonal purchases, will meet demand.
Advanced batteries and market resources will improve speed to market and system benefits.
Yates said the initiative builds on prior savings commitments, strengthens stakeholder collaboration and positions NiSource as a leader in the utility sector, while reinforcing long-term infrastructure investment, supporting digital growth, improving grid flexibility, enabling scalable capacity and aligning with evolving energy demand across the region.
