NiSource Expands Microsoft Power Deal, Projects $1.75B In Customer Savings

• Microsoft is expected to begin taking electricity service in 2028 under a 20-year agreement for its planned northwest Indiana campus.
• NiSource plans to add approximately 1,100 MW of generation resources, with Microsoft fully funding the generation and transmission infrastructure required to serve its electricity demand.
• NI is scheduled to report its third-quarter 2026 earnings on October 28, with analysts expecting earnings of approximately $0.21 per share on revenue of $1.35 billion.

Ni Source inc. (NI) shares were in focus on Friday after the utility announced a long-term energy agreement with Microsoft (MSFT) for its planned northwest Indiana campus. Its new 20-year agreement for the planned campus is expected to contribute to a broader strategy that NiSource says could deliver $1.75 billion in savings to existing electricity customers. 

“Affordability is not separate from economic development; it is a key pillar of our GenCo model,” NiSource CEO Lloyd Yates said, adding that the company aims to attract investment and create jobs while protecting existing customers.

NI shares rose 2.8%, while MSFT shares gained 0.32% in Friday’s premarket trading, as of the time of writing.

Microsoft Deal Lifts Projected Customer Savings

Microsoft is expected to begin taking electricity service under a 20-year agreement in 2028. Through NiSource Generation Company (GenCo), the company will expand its pool of generation resources by approximately 1,100 megawatts to serve Microsoft’s data center and NIPSCO customers.

The agreement raises total expected savings for Northern Indiana Public Service Company (NIPSCO) electric customers could be approximately $1.75 billion over the life of data-center customer contracts, up from the previously announced $1.4 billion. NiSource estimates the savings could amount to as much as $140 per customer annually.

Microsoft To Fund Power Infrastructure

According to NiSource, Microsoft will fully fund the generation and transmission infrastructure required to serve its electricity demand.

The company said the infrastructure will also upgrade NIPSCO’s electric transmission system, with the aim of improving grid reliability and resilience while protecting existing residential and business customers from the costs of serving the data center.

GenCo has also contracted 600 MW of battery storage under a long-term tolling agreement. An affiliate of AGP Group will develop and construct the facility, which will become part of GenCo’s resource pool serving multiple large-load customers.

Microsoft Senior Director of Energy Markets Jeff Riles said the company is committed to paying its own way and identifying long-term solutions to ensure its data centers do not increase electricity prices for other ratepayers.

Riles added that the partnership with NIPSCO is intended to support growth, protect ratepayers and help maintain a reliable grid for communities in northern Indiana.

NiSource said it will provide further operational and financial details about the agreement and its broader approach to data center growth during its third-quarter earnings call.

NI Earnings: What To Expect 

NI is expected to report its third-quarter 2026 earnings on October 28, before the U.S. market opens. Analysts expect NI to generate earnings of approximately $0.25 per share on revenue of $1.36 billion, according to Fiscal AI. 

NI, MSFT Stocks: Retail View 

Retail sentiment on Stocktwits for NI remained ‘Neutral’ with ‘Low’ message volumes over the past 24 hours, while MSFT sentiment was ‘Bearish’ with ‘Normal’ message volumes.

NI shares are down over 1.2% year-to-date, while MSFT shares have gained more than 11% over the same period.

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