NiSource Inc. (NYSE: NI) announced a long-term energy agreement with a subsidiary of Alphabet Inc. to support development and operation of a data center in northern Indiana. The utility company said service for Alphabet is expected to begin summer 2026.

The agreement utilizes NiSource's NIPSCO Generation LLC (GenCo) model, which involves a pooled portfolio of electric generation assets for large-load customers and market capacity purchases. The GenCo-owned pool portfolio is expected to total approximately 340 MW, with seasonal market purchases of up to 175 MW.

NiSource also expanded its existing agreement with Amazon Data Services, Inc., accelerating energization of Amazon sites and associated credits for residential customers.

The company stated that aggregate cost savings from GenCo agreements now reach approximately $1.25 billion for existing customers, translating to $90-$115 annually for residential customers. NiSource will contribute $17 million to a customer fund supporting local communities hosting generation and data center development.

"Our strategy is centered on protecting our customers from cost increases associated with these projects while supporting responsible growth in Indiana," said NiSource President and CEO Lloyd Yates.

The agreements are designed to upgrade NIPSCO's electric transmission system and improve grid reliability for customers across the state. NiSource serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states.

The company plans to share additional operational and financial details during its first quarter earnings call. The information is based on a press release statement from NiSource.