Alphabet and NiSource Forge Major Power Deal for Indiana Data Center, Amazon Agreement Also Expanded
April 17, 2026
In a significant move highlighting the intensifying demand for power from the digital infrastructure sector, U.S. utility holding company NiSource Inc. has entered into a long-term energy supply agreement with a subsidiary of Alphabet Inc. The deal is designed to power a large-scale data center facility in Northern Indiana, with energy delivery slated to commence in the summer of 2026.
The agreement underscores a strategic shift by utilities to directly cater to the massive and growing energy needs of hyperscale data centers. NiSource, through its generation subsidiary NIPSCO Generation, will supply power from a pooled portfolio of electric generation assets specifically tailored for large-load customers. This model, known as GenCo, is central to NiSource's strategy to capture market share in the data center industry, with its owned generation portfolio currently expected to reach approximately 340 megawatts.
"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."
Alphabet's primary subsidiary, Google, is actively developing its data center footprint in the state. Its projects include a $2 billion campus in Fort Wayne, whose first phase became operational late last year, and a sprawling 390-acre campus currently under development in Morgan County. The specific facility tied to the new power agreement was not disclosed.
In a parallel announcement, NiSource revealed it has also expanded an existing energy supply agreement with Amazon Data Services to support the activation of multiple Amazon sites across Indiana. The utility stated this deal would generate cost savings for residential customers and enable faster site energization, though specific locations were not detailed. Amazon's commitment to Indiana is substantial, with Amazon Web Services having announced an $11 billion investment in St. Joseph County last year and a further $15 billion planned for statewide data center and AI infrastructure in November.
The back-to-back deals with two tech giants signal Northern Indiana's rising prominence as a data center hub, driven by available land and strategic utility partnerships. For utilities like NiSource, which provides electricity and natural gas across six states including its home base of Indiana, such long-term contracts with credit-worthy technology firms offer a stable revenue stream and a pathway to fund grid modernization and generation capacity expansion without burdening residential ratepayers.
Source: datacenterdynamics
