NiSource Inc. entered into a long‑term energy supply agreement with a unit of Alphabet to support the development and operation of a large‑scale data center in northern Indiana, with service expected to begin in summer 2026. The company also confirmed an expansion of its existing agreement with Amazon Data Services, accelerating the energization of Amazon sites and providing additional credits for residential customers.
In its most recent earnings, NiSource reported GAAP net income of $929.5 million and non‑GAAP adjusted net income of $905.2 million for 2025, up from $739.7 million and $798.6 million in 2024. For Q4 2025, sales reached $1.89 billion and net income was $249.2 million, yielding an adjusted EPS of $0.51, a beat of $0.02 over the consensus estimate of $0.49. Revenue, however, missed consensus expectations of $1.49 billion. The company reaffirmed its 2026 non‑GAAP consolidated adjusted EPS guidance of $2.02–$2.07 and its 2026‑2033 compound annual growth rate of 8‑9%.
The new agreements add $1.25 billion in customer value and $17 million in community contributions, and are part of NiSource’s $28 billion investment plan for 2026‑2030, with nearly $7 billion earmarked for strategic data‑center infrastructure. The GenCo model delivers dedicated power and gas to data‑center customers while shielding existing customers from cost increases, positioning NiSource as a preferred partner for AI‑driven infrastructure projects in the Midwest.
"Our strategy is centered on protecting our customers from cost increases associated with these projects while supporting responsible growth in Indiana," said President and CEO Lloyd Yates. "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," Yates added. He also noted, "We closed 2025 with significant momentum, delivering on our commitments and advancing a diversified portfolio that spans natural gas, electric, renewables, and a transformative data center project."
The announcement was met with a positive market response, reflecting investor confidence in NiSource’s data‑center strategy and the GenCo model’s ability to secure large contracts while protecting existing customers. The company’s strategic focus on AI‑driven demand provides a tailwind, while regulatory concerns about grid strain and consumer cost increases present headwinds that NiSource aims to balance through its dedicated infrastructure investments.
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