Microsoft has signed a 20-year power agreement with Indiana utility NiSource to supply a planned data center in the state, Data Center Dynamics reported. The power will be delivered through NiSource Generation Company LLC, known as GenCo, and Microsoft is expected to begin taking power in 2028.
The agreement will add about 1.1GW to NiSource's power portfolio. GenCo has contracted 600MW of battery storage under a tolling agreement, with an affiliate of AGP Group set to build the storage facility. The report names battery storage as the only specific resource and does not identify the technology behind the remaining capacity. NiSource is expected to provide the transmission and generation infrastructure for the campus.
The campus will be served under a new large-load rate class. Under that structure, large power users fund the generation and infrastructure needed for their facilities, a design the utility says is intended to protect existing customers from rate increases. NiSource chief executive Lloyd Yates described affordability as a pillar of the GenCo model, and Microsoft senior director of energy markets Jeff Riles said the company aims to avoid raising electricity prices for other ratepayers.
Data Center Dynamics said the deal will likely serve Microsoft's La Porte data center under construction in northern Indiana, though the report does not confirm the site. Microsoft announced a 245,000 square foot data center on 489 acres at Radius Industrial Park in 2024 as part of a $1 billion investment in Northwest Indiana. In April 2026 the company expanded plans to 17 buildings on a larger La Porte plot, and it also owns 939 acres in Mishawaka, Indiana.
Source: Data Center Dynamics - https://www.datacenterdynamics.com/en/news/microsoft-signs-20-year-power-deal-with-indiana-utility-nisource-for-planned-data-center-in-the-state/