NiSource Amazon Data Center Partnership
Indiana Regulators Approve NiSource-Amazon Data Center Plan, Promising $1.4 Billion in Customer Savings
Key Points
NiSource’s broader footprint extends beyond Indiana, serving about 500,000 electric customers in Indiana through its NIPSCO utility and roughly 3.3 million natural gas customers across six states, underscoring the wide potential impact of the data-center growth strategy.
The approvals were framed as an inaugural milestone for NiSource’s collaboration with Amazon on data-center development in northern Indiana, signaling a potential new model for utility-data-center partnerships and the possibility of attracting additional technology investments.
Financial market reaction to the news included NiSource stock trading in pre-market hours at about $47.00 on the NYSE, with the shares down roughly 1.3%, reflecting investor sensitivity to the regulatory outcome.
Indiana's utility regulator gave a landmark green light on June 17, 2026, approving NiSource's full partnership with Amazon to power new data centers in northern Indiana. The Indiana Utility Regulatory Commission approved the settlement agreement, Amazon's special contract, a power purchase agreement, and NiSource's proposed generation resources all at once, according to NiSource. CEO Lloyd Yates called the decision a "milestone" that delivers value for "customers and communities."
Existing NIPSCO customers stand to save roughly $1.4 billion over the life of the contracts, according to StreetInsider. Amazon will fund 100% of the new generation and transmission infrastructure needed to power its data centers. That keeps the cost off the bills of NIPSCO's 500,000 electric customers in Indiana.
Amazon Pays for Power, Customers Get Credits
The approved plan uses a "GenCo" model. NiSource created a separate entity, NIPSCO GenCo, specifically to serve large customers like Amazon. That separation means Amazon's infrastructure costs never mix with the bills of regular households and businesses. Vincent Parisi, NIPSCO's CEO, argued before regulators that this ensures industrial and residential customers do not "intermingle funds," according to Utility Dive.
Once "Shared System Credits" are fully applied, a typical residential NIPSCO customer could save about $7 per month, according to Utility Dive. The credits work because Amazon's massive power demand helps spread fixed grid costs across more users. That lowers the per-customer share for everyone already on the system.
3 Gigawatts of New Generation Coming to Northern Indiana
The approved generation plan is enormous. NiSource and Amazon are planning up to 3 gigawatts of new power capacity. That includes 2.6 GW of gas-fired combined-cycle turbines and 400 megawatts of battery storage, according to Utility Dive. Any surplus power from those plants will feed back into the broader northern Indiana grid, potentially improving reliability for all customers.
The physical anchor for this buildout is a $7 billion Amazon Web Services campus near the old Schahfer Generating Station in Jasper County. On June 15, Jasper County Commissioners unanimously approved development agreements for that campus, according to Inside Indiana Business. The county expects $1 billion in tax revenue over 15 years, plus $23 million in annual payments to fund local schools and roads.
Critics Say Gas Buildout Undermines Green Energy Goals
Not everyone cheered the approval. The Citizens Action Coalition, a consumer and environmental advocacy group, opposed the deal. The group argued that investing $7 billion in new natural gas turbines collaterally attacks Indiana's earlier green energy commitments. Critics also said the $1.4 billion in projected savings is a distraction from the long-term risks of locking into fossil fuel infrastructure, according to IURC legal filings.
Environmental concerns aside, the GenCo structure also bypassed the traditional Certificate of Public Convenience and Necessity process. Normally, a utility must prove a new power plant is needed for the whole system before building it. The IURC granted NiSource a "declination of jurisdiction" that lets it skip that step for data-center-specific assets, according to Nasdaq.
NiSource Sets a Template as Amazon Bets Billions on Indiana
This approval is not a one-off deal. NiSource already announced a second GenCo agreement in April 2026, this time with Alphabet Inc., Google's parent company, for another large data center in northern Indiana, according to Nasdaq. Regulators also committed to expedited schedules for future agreements, giving NiSource a clear speed-to-market advantage over utility rivals in other states.
Amazon's commitment to Indiana runs deep. The company previously announced an $11 billion investment in St. Joseph County and added another $15 billion expansion in late 2025, according to Inside Indiana Business. Despite the milestone approval, NiSource stock dipped about 1.3% to roughly $47.00 in pre-market trading on June 23, reflecting investor sensitivity to the deal's massive capital requirements, according to MarketWatch.
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