NiSource Inc. (NYSE: NI) announced today a new long‑term energy agreement with a subsidiary of Alphabet Inc. (Alphabet) 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. (Learn more at www.nipscogenco.com.)
“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.”
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 Data Services, Inc.
NiSource also announced today an expanded agreement with Amazon Data Services, Inc. (Amazon). Under the updated agreement, NiSource is accelerating the energization of Amazon sites and associated credits for residential customers. Residents will see the benefits of cost savings and site activation sooner, enabling them to take advantage of 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 is structured to help ensure existing customers benefit directly from the addition of new large electric load, with aggregate cost savings now expected to reach approximately $1.25 billion for existing customers, which is approximately $90-$115 annually for residential customers.
Furthermore, NiSource will make additional contributions to support local communities hosting generation and data center development through a customer fund aggregating to $17 million as a result of the announced GenCo agreements.
NIPSCO and GenCo will provide electric transmission and generation infrastructure to support data centers while coordinating safe and reliable power sourcing. Currently, the GenCo-owned pool portfolio is expected to total approximately 340 MW. These assets, along with seasonal market purchases of up to 175 MW, will meet the requirements of the counterparties.
By employing advanced battery solutions and available market resources to serve customer needs, GenCo will deliver the speed to market which data center customers have sought with increased capacity at an early stage, thereby enhancing the overall benefits of the existing system for customers.
Further operational and financial details on these strategic agreements and NiSource’s approach to supporting data center growth will be shared during the company’s first quarter earnings call.
“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. 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
Additional information is available on the Investors section of www.nisource.com and www.nipscogenco.com. The company alerts investors that it intends to use the Investors section of its website www.nisource.com and the company’s social media channels to disseminate important information about the company to its investors. Investors are advised to look at NiSource’s website and social media channels for future important information about the company.
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 through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability – North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity. Learn more about NiSource’s record of leadership in sustainability, investments in the communities it serves and how we live our vision to be an innovative and trusted energy partner at www.NiSource.com.
The content of our website is not incorporated by reference into this document or any other report or document NiSource files with the Securities and Exchange Commission (“SEC”).
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Forward-Looking Statements
This Press Release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Forward-looking statements in this press release include, but are not limited to, statements concerning our provision of power to data center customers under certain agreements, cost savings to customers over the life of the data center contracts, protecting customers from cost increases and other statements regarding our plans, strategies, objectives, and expected performance related to data center operations. Expressions of future goals and expectations and similar expressions, including “may,” “will,” “should,” “could,” “would,” “aims,” “seeks,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential,” “targets,” “forecast,” and “continue,” reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially from those projected in any forward-looking statement discussed in this Press Release include, among other things: receipt, timing and terms of required regulatory approvals in connection with the agreements and the ability to comply with any conditions associated with such regulatory approvals; the ability of the customer to implement its plans to construct data centers; the impact of public involvement, intervention or litigation with respect to these projects, our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our JV partners; our ability to construct, develop and place into service the generation or transmission assets we develop to support the customer under data center contracts (the “Contract Assets”) and any future data center contracts on time or at all and consistent with initial cost estimates, as well as the performance of such assets once constructed and placed into service; our ability to obtain the significant additional financing required to construct the Contract Assets and any other generation or transmission assets we develop to support future data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under the data center contract and any future data center contracts that we enter into; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under the data center contract and any future data center contracts that we enter into; our customers’ performance under the data center contract and any future data center contracts; any decision by our customer or future customers to terminate the data center contract or future data center contracts or reduce the committed capacity thereunder; potential changes in the MISO accreditation treatment of capacity resources; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in related laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; the actions of activist stockholders; any damage to our reputation; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our debt obligations; any changes to our credit ratings or the credit ratings of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; economic conditions in certain industries; the ability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, “Business,” Item 1A, “Risk Factors” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to expected results over time or otherwise, except as required by law.
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