NiSource signs long-term power deal with Alphabet, expands Amazon agreement

April 16 (Reuters) - U.S. utility ‌NiSource said on ​Thursday ​it had signed a long-term energy supply agreement with a unit of Alphabet to support a large data ‌center in northern Indiana.

The company also said it had expanded ⁠an agreement with Amazon to speed up power delivery to its sites and ‌bring forward bill credits ‌for households.

• Big Tech firms have been scouring for new, reliable and cleaner energy sources to power their rapidly expanding data centers, ​which are being driven by the increasing use of artificial-intelligence applications.

• GenCo is NiSource's model that supplies power to large ⁠customers using dedicated generation and market resources, while shielding existing customers from added costs and ​delivering system-wide savings.

• The GenCo model aims to ensure existing customers benefit from new large users, with savings ​estimated at about $1.25 billion, or $90 to $115 a ‌year per household.

• NIPSCO and GenCo will provide generation and transmission infrastructure to serve data centers, with ⁠about 340 megawatts from a GenCo-owned portfolio supplemented by up to 175 megawatts of seasonal market purchases.

• Lawmakers in Maine voted earlier this week ⁠for a bill that would halt new large data center approvals as concerns ​mount that the rapid buildout of power-guzzling facilities could strain local grids and push up household energy bills.

• "The cost savings announced today expand on the previously ‌announced $1 billion in customer savings with Amazon as we continue to work closely with a broad coalition ‌of stakeholders to bring this GenCo vision to life," said NiSource ⁠President and CEO Lloyd Yates.

• ‌The power supply for ​Alphabet was expected to begin in summer 2026, the company said.

(Reporting by Varun Sahay in Bengaluru; Editing by ‌Pooja Desai)

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