NiSource says Microsoft will fund all generation and transmission needed to serve the campus. The terms come from NiSource’s announcement; Microsoft’s comment is a quote in that release.
NiSource said on Friday it has signed a long-term energy agreement with Microsoft for Microsoft’s previously announced northwest Indiana data center campus. According to NiSource, Microsoft is expected to begin taking electric service under a 20-year term starting in 2028, and NiSource’s generation subsidiary, GenCo, will add about 1,100 MW to the pool of resources serving large-load customers. NiSource says Microsoft will fully fund the generation and transmission required to serve its load, a structure meant to keep those costs off existing NIPSCO electric customers. In connection with the deal, GenCo has contracted 600 MW of battery storage under a long-term tolling agreement, to be built by an affiliate of AGP Group, the utility said. NiSource now projects about $1.75 billion in savings for existing NIPSCO electric customers over the life of its data center contracts, up from $1.4 billion. In the release, Microsoft energy markets director Jeff Riles said the company is committed to “paying our own way.” NiSource says it will give more details on its third-quarter earnings call.
Sources: NiSource