NiSource, Microsoft Reach Deal On Powering La Porte Data Center
NiSource and Microsoft reached a 20-year agreement to provide power for Microsoft’s planned data center campus in northwest Indiana, with service expected to begin in 2028. Microsoft will fund the generation and transmission infrastructure, while the arrangement is projected to increase savings for Northern Indiana Public Service Company customers and support grid reliability.
NiSource announced a long-term power agreement with Microsoft for the company’s previously announced data center campus in La Porte, Indiana. Through NiSource Generation Company, Microsoft is expected to begin taking electric service in 2028 under a 20-year term and will fully fund the generation and transmission assets needed to serve its load.
The agreement will expand NiSource’s expected savings for NIPSCO electric customers to approximately $1.75 billion over the life of data center contracts, according to the company. The GenCo portfolio will add about 1,100 megawatts of generation and transmission capacity, while an affiliate of AGP Group will develop and construct 600 megawatts of battery storage under a long-term agreement. NiSource CEO Lloyd Yates and Microsoft energy executive Jeff Riles said the arrangement is intended to support regional economic growth without shifting data center costs to existing ratepayers.