The Indiana data center project in La Porte is advancing toward construction as Microsoft secures a 20-year electricity agreement with NiSource. The deal establishes a long-term power supply framework for the technology company’s planned northwest Indiana campus.
It also sets out major investments in generation, transmission and battery storage infrastructure. NiSource expects electricity deliveries to begin in 2028, supporting the campus’s anticipated development and operations. The agreement covers an expanded power portfolio of approximately 1.1 gigawatts (GW), according to Data Center Dynamics.
Microsoft previously announced a $1 billion investment in a 489-acre site at Radius Industrial Park. However, the companies have not disclosed a separate construction budget for the campus or the full value of the power agreement.
Indiana data center project requires major power infrastructure
The agreement goes beyond electricity purchases by establishing infrastructure commitments for the planned campus and its substantial energy requirements. NiSource will expand generation and transmission capacity through its subsidiary, NiSource Generation Company LLC (GenCo). The utility expects the additional capacity to support the data center while maintaining protections for existing electricity customers.
Furthermore, GenCo has contracted 600 megawatts (MW) of battery storage through a tolling agreement. An affiliate of AGP Group will construct the storage facility, according to Data Center Dynamics. The batteries could help manage electricity supply and demand as the wider power infrastructure serves large industrial loads.
NiSource will deliver electricity under a new rate structure designed for customers with substantial power requirements. Under this arrangement, large-load customers must fund the generation and infrastructure needed for their facilities. Consequently, the framework aims to limit the transfer of data center-related costs to existing ratepayers.
NiSource president and chief executive officer Lloyd Yates said the agreement balances economic development with customer affordability. Microsoft senior director of energy markets Jeff Riles also emphasized the company’s commitment to paying its own way. He said the partnership would support regional growth while protecting ratepayers and strengthening grid reliability.
Indiana data center project expands La Porte construction plans
Microsoft announced its La Porte development in 2024 as part of a $1 billion investment in northwest Indiana. The original proposal covered a 489-acre site at Radius Industrial Park. Its initial phase included six data centers and a substation on the first development plot.
In April 2026, Microsoft expanded its plans to include 17 buildings across land between East 250 South, East State Road 4 and Stevens Road. However, the company has not confirmed how many buildings will serve as data centers. The expanded layout signals a broader development scope than the original six-building data center phase.
The 20-year power agreement is scheduled to begin in 2028, when Microsoft expects to start drawing electricity for the facility. This timeline makes generation capacity, transmission infrastructure and storage important elements of project delivery. Nevertheless, the companies have not disclosed the contract’s financial value or a separate construction cost for the expanded campus.
The project also reflects increasing demand for power infrastructure to support large-scale computing facilities. For La Porte, delivery will depend on coordinating building construction with the electricity systems needed for operations. The agreement provides a long-term supply framework, although the full construction schedule and campus capacity remain undisclosed.
Microsoft’s 20-year power agreement with NiSource highlights the growing importance of dedicated energy infrastructure in data center construction. A similar approach is emerging in Arkansas, where Google is investing in renewable energy, battery storage and grid upgrades to support its planned campus. The development is detailed in the $4 billion West Memphis data center project, which includes $600 million in solar, storage and grid improvements.
Project Fact Sheet
Name: Microsoft La Porte Data Center Campus.
Type: Hyperscale data center development and supporting power infrastructure.
Location: Radius Industrial Park and expanded development land in La Porte, northwest Indiana, United States.
Developer: Microsoft.
Original investment: $1 billion announced for the northwest Indiana development.
Site area: Approximately 489 acres in the original La Porte proposal.
Original facility plan: Six data centers and a supporting electrical substation.
Expanded development plan: 17 buildings across land near East 250 South, East State Road 4 and Stevens Road.
Power agreement: 20-year electricity supply contract commencing in 2028.
Planned power portfolio expansion: Approximately 1.1 GW.
Battery storage capacity: 600 MW under a tolling agreement.
Electricity infrastructure: Generation and transmission facilities to support the campus.
Battery storage contractor: An affiliate of AGP Group.
Construction cost: Not separately disclosed for the campus or expanded development.
Power contract value: Not disclosed.
Expected power commencement: 2028.
Current development status: Data center construction and expansion planning underway, with the long-term power agreement announced in October 2026.
Project Team
Developer and data center operator: Microsoft.
Electricity supplier and infrastructure provider: NiSource Inc.
Power generation subsidiary: NiSource Generation Company LLC (GenCo).
Battery storage construction: An affiliate of AGP Group.
Utility leadership: Lloyd Yates, president and chief executive officer of NiSource.
Microsoft energy markets representative: Jeff Riles, senior director of energy markets.
Electricity distribution utility referenced in the agreement: Northern Indiana Public Service Company (NIPSCO), part of NiSource’s utility operations.
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