NiSource Teams Up With Alphabet And Amazon To Power AI Data Centers—And Says Your Energy Bills Could Drop By This Much

On Thursday, NiSource (NYSE:NI) announced a long-term energy supply agreement with a subsidiary of Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).

Powering AI Growth Without Raising Bills

The agreement with Alphabet is to support a large data center in northern Indiana, as demand for AI infrastructure accelerates.

The company also expanded its agreement with Amazon.com, Inc. (NASDAQ:AMZN) to speed up power delivery to its facilities and accelerate bill credits for households.

GenCo Model Promises Customer Savings

NiSource said its NIPSCO Generation LLC (GenCo) model—designed to serve large energy users with dedicated generation—ensures existing customers are insulated from added costs.

The company estimates about $1.25 billion in system-wide savings, translating to roughly $90 to $115 annually per household.

“The cost savings announced today expand on the previously announced $1 billion in customer savings with Amazon,” CEO Lloyd Yates said. “We continue to work closely with a broad coalition of stakeholders to bring this GenCo vision to life.”

Meeting Surging Data Center Demand

Under the plan, NIPSCO and GenCo will provide generation and transmission infrastructure, including about 340 megawatts of dedicated capacity and up to 175 megawatts from seasonal market purchases.

The agreement with Alphabet is expected to begin in summer 2026.

Growing Concerns Over Power Strain

The deals come as policymakers, including lawmakers in Maine, raise concerns that energy-hungry data centers could strain grids and increase consumer costs, prompting calls for tighter approvals.

New data from Goldman Sachs underscores the scale of the challenge, with global data center power demand projected to jump 220% by 2030 from 2023 levels.

That surge would increase total consumption by about 905 terawatt-hours (TWh) to reach 1,350 TWh, highlighting how rapidly AI-driven infrastructure is reshaping energy needs worldwide.

Price Action: NiSource Inc shares closed at $47.72, up 0.74% on Thursday and rose a further 2.68% in after-hours trading to $49, according to Benzinga Pro.

NI sits in the 85th percentile for Growth on Benzinga Edge, indicating a positive price trend across short, medium and long-term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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