NiSource Signs Energy Deal for Indiana Data Center
The 20-year agreement with Microsoft covers power for a new data center campus in Indiana.
Updated on Oct. 16, 2026 in Data Centers
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NiSource has entered into a 20-year energy supply agreement with Microsoft to power a data center campus in Indiana. Under the contract, Microsoft will fund the necessary generation and infrastructure for the facility.
Why it matters
The deal aims to provide energy for Microsoft's operations while shielding existing electric customers from the costs of building new power infrastructure. The arrangement is projected to save Northern Indiana Public Service Company customers $1.75 billion over the life of the contracts.
The energy supply deal spans a 20-year term starting in 2028. Microsoft has committed to fully funding the electricity generation and infrastructure capacity required to serve its data center load.
The players
NiSource
NiSource is a major energy holding company that provides electric and natural gas service to millions of customers across several states.
Microsoft
Microsoft is a global technology corporation that invests heavily in cloud computing infrastructure and data center campuses.
The details
The agreement is specifically designed to handle the high energy requirements of data centers while protecting local ratepayers from the incremental costs of the development. By financing the generation and infrastructure upgrades independently, Microsoft intends to secure a long-term power supply for its expanding technological footprint.
Timeline
Microsoft is scheduled to begin receiving electric service under the agreement in 2028.
The Tech Race
This deal underscores the industry-wide move toward direct capital investment by tech giants into regional power grids to circumvent energy bottlenecks. As data centers become more power-intensive, this positions Microsoft ahead of rivals by securing long-term grid capacity through private funding.
For local utility customers in Indiana, the agreement is designed to stabilize electricity costs by offsetting infrastructure expenses through Microsoft's funding. Residents can expect the energy grid to expand to support the new facility without seeing their own utility rates rise to cover the construction.
The takeaway
The deal highlights a shift toward private-sector financing for essential public grid upgrades required to sustain high-growth tech projects. By insulating ratepayers from construction costs, the arrangement creates a model for balancing industrial growth with consumer affordability.
Further reading
For more context on how large-scale computing needs shape utility infrastructure, see the latest updates on Indiana Data Centers.
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