INDIANA BUSINESS

NIPSCO-Microsoft power deal for NW Indiana campus contracts 600 MW battery, raises expected customer savings to $1.75B

NiSource subsidiary NIPSCO announced a long-term energy agreement with Microsoft for the company’s previously announced northwest Indiana data‑center campus. NIPSCO said the deal includes a 20-year service term expected to begin in 2028 and a contracted 600 MW battery project, and that Microsoft will fully fund required generation and transmission.

News BriefBy BusinessIndy News DeskCommentsPublished October 16, 2026 at 3:21 PM EDTLiving story · 2 sources

AI-generated illustration of the topic: NIPSCO-Microsoft power deal for NW Indiana campus contracts 600 MW battery, raises expected customer savings to $1.75B — AI illustration · Not a photograph of the reported event.

NIPSCO announced on 2026-10-16 that it has signed a long-term energy agreement with Microsoft to serve the tech giant’s planned northwest Indiana data‑center campus. NIPSCO said Microsoft is expected to begin taking electric service under a 20‑year term beginning in 2028.

In the release NIPSCO said it has contracted 600 MW of battery storage under a long-term tolling agreement and that the battery facility will be developed and constructed by an affiliate of AGP Group. NIPSCO also said Microsoft will fully fund the generation and transmission required to serve its load and that the new deal increases total expected NIPSCO customer savings to approximately $1.75 billion (about $140 per customer annually). (Source: NIPSCO news release)

WHY IT MATTERS

This announcement matters to NIPSCO electric customers and Indiana business watchers because NIPSCO frames the Microsoft contract as expanding a set of data‑center customer agreements that it says will lower costs for its broader customer base. NIPSCO’s release reports the company’s own estimate that customer savings tied to data‑center contracts have risen to about $1.75 billion over the life of those deals, equal to roughly $140 per customer per year on that company estimate.

The release also reports two project mechanics to watch: a contracted 600 MW battery project (NIPSCO says it is under a long-term tolling agreement and will be developed by an AGP affiliate) and NIPSCO’s statement that Microsoft will fully fund the generation and transmission needed to serve the campus. NIPSCO’s announcement does not provide additional operational details about the tolling agreement or the battery project in the release itself; those specifics and any required regulatory filings or permits are the next items to watch.

Next step: NIPSCO’s release sets 2028 as the expected start of Microsoft’s 20‑year service term; readers should watch for NIPSCO filings, permit notices or subsequent company disclosures that provide implementation dates and operational details for the battery project and the generation and transmission arrangements. (Source: NIPSCO news release)

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Sources

Linked source published October 16, 2026 at 7:15 AM EDT. A sourced news brief; no independent staff reporting is implied. Prepared with AI assistance from the linked research; material claims remain attributed in the article.

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