Microsoft power deal adds 1,100 MW to NiSource’s Indiana plan
The plan
NiSource announced a 20-year electricity agreement on October 16 for Microsoft’s planned campus in northwest Indiana. Service is expected to start in 2028. NiSource says Microsoft will pay for the power-generation equipment and transmission infrastructure needed to serve its demand.
The company’s GenCo business plans to expand its shared supply pool by about 1,100 megawatts, or MW. GenCo also contracted 600 MW of battery storage from an AGP affiliate for a pool serving several large customers. These are planned resources, not evidence that the campus is already operating.
The practical meaning
A megawatt describes a rate of power delivery, not how long that power lasts. Think of the distinction between how fast water flows from a tap and how much water a tank holds. The battery’s 600 MW rating does not tell us how many hours it can supply electricity; the announcement gives no storage duration.
The supply pool is shared. Its expansion should not be read as a measurement of electricity used by Microsoft’s computing equipment alone.
The local picture
For existing NIPSCO electricity customers, the important question is who pays for the new infrastructure. NiSource says the arrangement protects them from those added costs. It raises projected savings across its data-center contracts from $1.4 billion to about $1.75 billion over their lifetimes, estimating as much as $140 per customer annually. Those are company forecasts, not guaranteed bill reductions or savings already received.
Implications for AI
The agreement connects Microsoft’s planned campus with long-term power arrangements rather than just a promise of future electricity. But signing a contract is not the same as having the equipment ready. NiSource identifies regulatory approvals, construction, financing and customers’ building plans among the risks to its expectations.
Milestones to follow
NiSource says it will provide more operational and financial detail on its third-quarter earnings call. Watch for those details and progress toward the expected 2028 service date.
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