Microsoft, NiSource reach 20-year power agreement for Northern Indiana data center campus
NiSource and Microsoft agreed to a 20-year power deal for Microsoft's data center in La Porte, Indiana. Starting in 2028, the agreement will add 1,100 megawatts of power and 600 megawatts of battery storage. Microsoft will fund new power generation and transmission equipment. NiSource estimates $1.75 billion in savings for existing customers over the contract's lifetime.
How this was made
The 30-second read
Why it matters
The agreement secures a stable, high‑volume load for NiSource and provides Microsoft with guaranteed power, reducing operational risk for the data center.
Market read
A strategic utility‑tech partnership that could set a precedent for future data‑center power deals.
What to watch
Potential regulatory or environmental hurdles for new generation assets could delay project timelines.
Background
Microsoft is expanding its data‑center footprint in Indiana; NiSource seeks to lock in long‑term, high‑value customers to fund grid upgrades.
Ticker impact
NiSource announced a new 20‑year power agreement with Microsoft to supply 1,100 MW for its Indiana data center campus.
likely upside as the market prices in the new revenue stream
First‑report of a multi‑year power deal with a major tech tenant; $1.75 B projected savings for customers indicate strong financial upside.
Microsoft will fund the power generation and transmission equipment for its planned LaPorte data center under the 20‑year agreement with NiSource.
minimal immediate impact; cost is offset by strategic data‑center expansion
The agreement is a capital investment rather than a revenue driver; market already expects data‑center growth.
Market effects
Highlights growing demand for dedicated power infrastructure for data‑center operators, benefiting utilities and renewable‑energy providers.
May boost investor interest in Midwestern utility stocks as data‑center projects expand.
Shows tech‑utility partnerships as a model for scaling data‑center capacity worldwide.
Counterpoint
The capital cost for Microsoft could pressure margins if energy prices rise, making the deal less accretive than implied.
Key entities
- CompanyMicrosoft
Technology giant building a new data center in LaPorte, Indiana.
- CompanyNiSource
Utility holding company and parent of NIPSCO, providing power and transmission services.
