NiSource signs 20-year Microsoft power deal, lifting customer savings to $1.75B

what happened

NiSource has agreed to a 20-year electricity arrangement with Microsoft covering a campus the tech company plans in the northwest of Indiana. According to TradingView, Microsoft will cover the full cost of the generation and transmission capacity needed to supply it.

The utility now estimates that electricity customers of NIPSCO could save about $1.75 billion over the life of the data center contracts, up from an earlier $1.4 billion. Stocktwits reports that NiSource puts the savings at as much as $140 per customer each year. The deal adds roughly 1,100 MW to the resource pool of NiSource Generation Company, and GenCo has also locked in 600 MW of battery storage through a long-term tolling deal built by an affiliate of AGP Group.

Service to Microsoft is expected to start in 2028. NiSource plans to share more operational and financial details on its third-quarter earnings call, scheduled for October 28.

why it matters

For investors, the news strengthens the company's growth story tied to data centers and shows that large customers are shouldering infrastructure costs. Further assessment will depend on regulatory approvals, financing and construction progress, along with earnings details expected on the October 28 call.

market impact

NI: long-term data center contract supports growth outlook; infrastructure costs shifted to Microsoft

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