NEW YORK 17 April 2026 (The Capital Post) – US utility company NiSource has signed a long-term electricity supply agreement with a unit of Alphabet Inc. while expanding its existing partnership with Amazon, as demand for energy-intensive data centres continues to surge.
The agreement with Alphabet will support a large-scale data centre project in northern Indiana, with power supply expected to begin in mid-2026. The move reflects increasing energy needs driven by the rapid growth of artificial intelligence and cloud computing infrastructure.
NiSource also announced it is accelerating energy delivery under its existing deal with Amazon, including earlier implementation of benefits such as bill credits for residential customers.
The projects will be supported through NiSource’s dedicated “GenCo” model, which supplies electricity to large industrial users using a mix of owned generation assets and market resources, while ensuring that existing customers are not burdened with additional costs.
Under this model, the company estimates total customer savings of about US$1.25 billion, equivalent to roughly US$90 to US$115 annually per household.
Infrastructure for the data centres is expected to include around 340 megawatts of power from company-owned sources, supplemented by additional energy purchases during peak periods to meet demand.
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The deals highlight intensifying competition among major technology firms to secure reliable and scalable energy sources as data centre expansion accelerates globally. Industry observers note that such agreements are becoming increasingly critical as AI-driven workloads significantly increase electricity consumption.
However, the rapid growth of large-scale data centres has also raised concerns in some regions about potential strain on power grids and rising energy costs, prompting policymakers to consider stricter oversight on future developments.
NiSource said its approach aims to balance infrastructure expansion with cost protection for existing customers, positioning the company to capitalise on growing demand from the technology sector while maintaining system stability.
The agreements underscore the deepening link between the energy and technology industries, as utilities play a key role in enabling the next phase of digital and AI-driven growth. -The Capital Post