U.S. utility NiSource announced a significant long-term energy supply agreement with a unit of Alphabet to power a large data center in northern Indiana. This deal is part of a broader trend of Big Tech firms seeking reliable, clean energy for their expanding data centers, fueled by AI applications.
NiSource also expanded its existing agreement with Amazon. This expansion will accelerate power delivery to Amazon's facilities and advance bill credits for households. The company's GenCo model, designed to supply large customers while shielding existing ones from added costs, is expected to generate approximately $1.25 billion in savings for customers, equating to $90-$115 annually per household.
Under the new arrangements, NIPSCO and GenCo will provide generation and transmission infrastructure. This includes approximately 340 megawatts from a GenCo-owned portfolio, supplemented by seasonal market purchases of up to 175 megawatts. The power supply for Alphabet is slated to commence in summer 2026.
This development follows concerns raised in Maine, where lawmakers voted to halt new data center approvals due to potential strain on local grids and rising energy bills.