NiSource Lands Major Microsoft Power Deal
Key takeaways
- Microsoft’s 20‑year power deal adds 1,100 MW of generation to NiSource, lifts customer savings to $1.75 billion, and keeps local rates unchanged.
- 1,100 MW new generation capacity
- 600 MW battery storage
- $1.75 billion projected savings
What happened
NiSource Inc. (NYSE: NI) announced a 20‑year power supply deal with Microsoft Corp. (NASDAQ: MSFT) that will bring about 1,100 megawatts of new generation capacity to Microsoft’s data‑center campus in northwest Indiana. The agreement will be fully funded by Microsoft, meaning existing residential and business customers will not see higher bills. NiSource says the deal will lift projected savings for Northern Indiana Public Service Company (NIPSCO) customers from $1.4 billion to roughly $1.75…
Why it matters
The deal gives Microsoft a reliable, long‑term power source for its expanding data‑center operations while keeping local customers’ rates stable. For NiSource, the contract boosts its generation portfolio, adds battery storage, and supports future grid upgrades, all of which should improve earnings and cash flow. The…
Short-term and longer-term
Short-term. NiSource shares rose 2.47% to $42.27 after the announcement.
Longer-term. The partnership positions NiSource as a key infrastructure provider for a major tech customer, potentially enhancing long‑term cash flow and earnings stability.