Indiana regulator approves NiSource-Amazon data center agreements

NiSource Inc. (NYSE: NI) said the Indiana Utility Regulatory Commission (IURC) approved key agreements supporting the company's previously announced partnership with Amazon to serve new data center development in northern Indiana.

On June 17, the IURC approved a settlement agreement, an Amazon special contract, and a related power purchase agreement. In a separate order, the commission also approved NiSource's proposed generation resources, including combined-cycle gas turbines and battery energy storage systems.

Under the approved framework, data center customers are required to fund the generation and transmission infrastructure needed to serve their operations. NiSource said existing customers of its NIPSCO electric utility are expected to receive approximately $1.4 billion in savings over the life of the data center contracts as a result of the arrangement.

As part of the settlement, parties agreed to support expedited procedural schedules for future agreements.

"Our regulator's approvals highlight the strength of our strategy and the value this approach can deliver for customers and communities," said NiSource President and CEO Lloyd Yates. "As data center demand continues to grow across our service territory, we are helping to ensure that new large-load customers support the infrastructure needed to serve them while existing customers benefit through bill credits as those customers ramp."

NiSource serves approximately 500,000 electric customers in Indiana through its NIPSCO brand, in addition to roughly 3.3 million natural gas customers across six states.

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