# NiSource and Microsoft Sign 20-Year Indiana Power Agreement Adding 1,100 MW > NiSource signed a 20-year energy agreement with Microsoft for its northwest Indiana campus, adding about 1,100 MW and lifting expected customer savings to $1.75 billion. - Published: 2026-10-16T11:35:30+00:00 - Section: Partnerships - Author: News Desk - URL: https://newsforagent.com/news/2026-10-16/nisource-microsoft-indiana-power-agreement - Source: [Business Wire](https://www.businesswire.com/news/home/20261015675062/en/) ## Key takeaways - NiSource announced a long-term energy agreement with Microsoft for its northwest Indiana campus, with electric service under a 20-year term starting in 2028. - The agreement adds approximately 1,100 MW to the GenCo-owned pool portfolio and lifts total expected NIPSCO electric customer savings to about $1.75 billion, or as much as $140 per customer annually. - GenCo contracted 600 MW of battery storage under a long-term tolling agreement, to be developed and constructed by an affiliate of AGP Group. NiSource Inc. announced a long-term energy agreement with Microsoft for its previously announced northwest Indiana campus, adding about 1,100 MW of generation and infrastructure and lifting total expected NIPSCO electric customer savings to approximately $1.75 billion, or as much as $140 per customer annually. The company said Microsoft will begin taking electric service under a 20-year term starting in 2028. The announcement was distributed by [Business Wire](https://www.businesswire.com/news/home/20261015675062/en/). ## How the Microsoft Agreement Works Through NiSource Generation Company LLC, known as GenCo, [NiSource](https://akta.pro/company-profiles/00026v6/nisource) is serving new large-load customers under a structure designed to protect existing [Northern Indiana Public Service Company](https://akta.pro/company-profiles/0000kpj/northern-indiana-public-service-company) electric customers from incremental costs and to return value from large-load customers' use of the existing electric system. Large-load customers fully fund the generation and infrastructure required to serve their needs. The agreement builds on the previously disclosed $1.4 billion in expected customer savings over the life of data center customer contracts. Microsoft fully funds all generation and transmission required to serve its load, and the assets will upgrade NIPSCO's electric transmission system. "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 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," said Jeff Riles, Senior Director of Energy Markets at [Microsoft](https://akta.pro/company-profiles/000026e/microsoft). ## Battery Storage Added to the GenCo Pool In connection with the Microsoft agreement, GenCo has contracted 600 MW of battery storage under a long-term tolling agreement. The facility will be developed and constructed by an affiliate of AGP Group, and the resource will be added to GenCo's pool resource assets designed to serve multiple large-load customers. ## NiSource's Earlier Data Center Agreements According to akta.pro [company records](https://akta.pro/company-data), NiSource entered an expanded 3 GW long-term energy supply agreement with Amazon Data Services in April 2026, involving nearly $7 billion in energy infrastructure investments and customer-funded generation. The same records show a long-term energy supply agreement with Alphabet through the GenCo subsidiary to power a large-scale data center in northern Indiana beginning summer 2026, with approximately 340-515 MW under the GenCo model. In June 2026, the Indiana Utility Regulatory Commission approved key agreements supporting the Amazon data center partnership. ## Indiana Scrutiny of NIPSCO Service Indiana Gov. Mike Braun called for an investigation into Northern Indiana Public Service Company on August 24, 2026, directing the Office of Utility Consumer Counselor to file a complaint with the Indiana Utility Regulatory Commission, according to Abcnews. NiSource executive Q.C. de Coteau said in August 2026 that burying power lines underground would be too costly for the company, despite a recent derecho causing widespread outages in Lake County, Indiana, nwitimes.com reported. ## Third Quarter Earnings Call NiSource said further operational and financial details on the agreement and its broader approach to supporting data center growth will be shared on the company's third quarter earnings call. ## Companies in this story - [NiSource company profile](https://akta.pro/company-profiles/00026v6/nisource) · website: https://www.nisource.com - [Northern Indiana Public Service Company company profile](https://akta.pro/company-profiles/0000kpj/northern-indiana-public-service-company) · website: https://www.nipsco.com - [Microsoft company profile](https://akta.pro/company-profiles/000026e/microsoft) · website: https://www.microsoft.com --- News for Agent · https://newsforagent.com/llms.txt