Indiana is positioning itself as one of the fastest-growing data center markets in the United States, and utility provider NiSource is playing a central role in that expansion through a regulatory framework designed to support large-scale energy demand while protecting existing customers.
NiSource announced that the Indiana Utility Regulatory Commission (IURC) has approved key agreements supporting its partnership with Amazon to serve new data center development in northern Indiana, providing regulatory approval for a strategy designed to accommodate rising large-load demand without shifting costs to existing customers.
The commission on June 17 fully approved the settlement agreement, Amazon special contract, and related power purchase agreement. In a separate order, regulators also approved proposed generation resources, including combined-cycle gas turbines and battery energy storage systems.
Amazon’s growing data center footprint in Indiana
The approvals support a broader expansion strategy tied to Amazon’s growing data center footprint in Indiana. Earlier this year, NiSource disclosed that it had increased Amazon’s capacity commitment by 400 megawatts, bringing the total contracted capacity to 2,800 MW by 2032.
$7 Billion Energy Investment Approved
Indiana regulators have approved agreements supporting about $7 billion in new power generation and battery storage for Amazon’s planned AI and data center operations. The investment will be fully funded by Amazon.
Dedicated Power Supply
GenCo plans to build two 1.3 GW combined-cycle natural gas plants and a 400 MW battery storage system. The facilities will provide dedicated power for Amazon’s hyperscale campus in Indiana.
Phased Buildout Through 2032
The project is expected to deliver roughly 3 GW of capacity by 2032. Initial power is targeted for January 2027, with additional capacity coming online in phases over the following years.
Customer Protections Included
The Indiana Utility Regulatory Commission approved the agreements on June 17, 2026, with the decision announced June 23. Under the approved structure, existing NIPSCO customers will not bear the project’s costs, and NiSource estimates the arrangement could generate about $1.4 billion in customer benefits.
The company said the approvals advance its strategy of supporting responsible large-load growth while helping shield existing customers from the costs associated with new data center demand.
“Our regulator’s approvals highlight the strength of our strategy and the value this approach can deliver for customers and communities,” NiSource President and CEO Lloyd Yates said. “As data center demand continues to grow across our service territory, we are helping to ensure that new large-load customers support the infrastructure needed to serve them while existing customers benefit through bill credits as those customers ramp.”
NiSource also noted that the settlement includes support for expedited procedural schedules for future agreements, a provision the company says strengthens its speed-to-market advantage when serving large-scale developments.
Rising electricity demand
The ruling comes as utilities and data center developers across the country race to meet rapidly rising electricity demand driven by cloud computing and artificial intelligence. Across the industry, utilities are increasingly seeking mechanisms that allow new infrastructure to be built for hyperscale customers without increasing costs for households and small businesses.
The decision further strengthens Indiana’s position as an emerging data center hub. NiSource has told investors that its generation platform currently supports approximately 800 MW under contract and sees additional gigawatts of potential opportunities across its service territory as demand for AI and cloud infrastructure accelerates.
For NiSource, the approvals represent an early validation of a strategy built around large-load development, utility investment, and customer protection. For Indiana, they reinforce the state’s growing role as a destination for data center expansion and associated power infrastructure investment.
With Amazon’s contracted capacity now reaching 2,800 MW through 2032, the regulatory approvals mark a significant milestone in Indiana’s evolving digital infrastructure and energy strategy.
Additionally, Indiana is not alone in grappling with the infrastructure demands of rapid data center expansion. Similar pressures are emerging in other states, including Pennsylvania, where growing concerns over grid capacity, water resources and local oversight are shaping discussions about the long-term impacts of hyperscale development.
Also, Indiana’s approval of NiSource-Amazon data center agreements reflects a broader national trend of utility-backed hyperscale expansion. One parallel example is Digital Realty’s De Soto Data Center Campus in Kansas, where the company is advancing a 2GW hyperscale development at Astra Enterprise Park, underscoring how large developers are pairing land acquisition with long-term power strategies to secure future AI-driven demand.
Factsheet: NiSource Wins Indiana Regulatory Approvals for Amazon Data Center Growth Plan
Company: NiSource Inc.
Regulator: Indiana Utility Regulatory Commission (IURC)
Approval Date: June 17, 2026
Project Area: Northern Indiana
Investment: ~$7 Billion
Developer: GenCo / NIPSCO
Customer: Amazon
Scope: Two 1.3 GW combined-cycle gas plants and a 400 MW (4-hour) battery storage system dedicated to powering Amazon’s AI and data center campus.
Capacity: ~3 GW
Approval: IURC approval granted June 17, 2026 (announced June 23, 2026).
Timeline: Initial power targeted for January 2027; phased buildout through 2032.
Key Detail: Fully funded by Amazon, with existing NIPSCO customers protected from project costs.
Approved Items: Settlement agreement, Amazon special contract, related power purchase agreement, proposed generation resources
Generation Resources: Combined-cycle gas turbines and battery energy storage systems
Amazon Contracted Capacity: 2,800 MW by 2032
Expected Customer Benefit: Approximately $1.4 billion
GenCo Contracted Portfolio: Approximately 800 MW
Core Strategy: Data center customers fund required generation and transmission infrastructure while existing customers receive bill credits and related benefit
About NiSource Inc.
NiSource Inc. (NYSE: NI) is one of the largest fully regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The mission of our approximately 7,700 employees is to deliver safe, reliable energy that drives value to our customers. NiSource is a member of the Dow Jones Sustainability – North America Index and is on Forbes lists of America’s Best Employers for Women and Diversity
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