Indiana-based natural gas and electrical utility NiSource has signed a long-term energy supply deal with a subsidiary of Alphabet to power a large-scale data center in northern Indiana.

Under the terms of the deal, energy supply is expected to begin in the summer of 2026, with power delivered via a pooled portfolio of electric generation assets to large-load customers. The energy will be delivered by the utilities subsidiary NIPSCO Generation, which focuses on constructing power infrastructure to serve large-scale data centers in Indiana.

“Our strategy is centered on protecting our customers from cost increases associated with these projects while supporting responsible growth in Indiana,” said NiSource president and CEO Lloyd Yates. “Our broadened collaboration with our technology partners reflects our dedication to delivering reliable energy solutions without compromising customer value.”

Google, Alphabet's main subsidiary, is currently developing two data center campuses in Indiana. These include a $2 billion facility in Fort Wayne, the first phase of which was brought online late last year, as well as a 390-acre campus in Morgan County, currently under development. The companies did not disclose which data center is tied to the power supply agreement.

In addition to the Alphabet deal, the utility announced it had expanded its agreement with Amazon Data Services to support energizing Amazon sites across the state.

According to the company, the deal will have positive impacts for residential customers, who will see cost savings and faster site activation. Further details on what sites would be energized were not disclosed.

Amazon has a growing presence in the state. In November, Amazon Web Services announced its intention to invest $15bn in data centers and AI infrastructure in the state, in addition to the $11bn investment announced last year in St. Joseph County.

Based out of Merrillville, Indiana, NiSource is a major US energy holding company that supplies both electricity and natural gas across Ohio, Pennsylvania, Virginia, Kentucky, Maryland, and primarily Northern Indiana.

Under its GenCo model, it has expressly targeted the data center market, looking to provide the sector with reliable energy options. At present, its GenCo-owned pool portfolio is expected to total approximately 340MW.