Investing.com -- NiSource Inc (NYSE: NI) shares rose 2.3% in Friday trade following the announcement of a 20-year power agreement with Microsoft for the tech giant's northwest Indiana campus.

The deal, set to begin in 2028, will provide approximately 1,100 MW of new generation resources to Microsoft's data center operations. Under the agreement structure, Microsoft will fully fund all generation and transmission infrastructure required to serve its needs, protecting existing Northern Indiana Public Service Company electric customers from incremental costs.

The agreement expands total expected customer savings to approximately $1.75 billion over the life of data center contracts, equating to as much as $140 per customer annually. This represents an increase from the previously disclosed $1.4 billion in expected savings.

Through NiSource Generation Company LLC, the company serves large-load customers under a model designed to ensure new customers fund their own infrastructure while returning value to existing customers through use of the electric system. The agreement includes 600 MW of battery storage under a long-term tolling agreement, with the facility to be developed by an affiliate of AGP Group.

"Affordability is not separate from economic development; it is a key pillar of our GenCo model," said NiSource President and CEO Lloyd Yates. "This agreement reflects the balanced approach we believe is needed for Indiana to attract significant investment and create long-term jobs."

Microsoft Senior Director of Energy Markets Jeff Riles said the company has "always been committed to paying our own way and identifying long-term solutions like this one to ensure that our data centers don't increase electricity prices for other ratepayers."

The infrastructure additions are expected to upgrade NIPSCO's electric transmission system, improving grid reliability for customers across Indiana. NiSource serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states.

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