NiSource Inc. (NYSE:NI) stock edged higher Friday after the utility company announced a 20-year power supply agreement with Microsoft Corp.
(NASDAQ:MSFT) to support its data center campus in northwest Indiana. 75 billion.
Microsoft Deal Expands Customer Savings Under the agreement, Microsoft will begin receiving electricity in 2028 through NiSource Generation Company LLC (GenCo). 75 billion over the life of data center contracts.
NiSource estimates the savings could reach $140 per customer annually. Microsoft will fully fund the generation and transmission infrastructure needed to power its data center.
As a result, existing residential and business customers will not bear the additional costs of serving the facility. NiSource CEO Lloyd Yates said the agreement demonstrates how large-scale investments can support economic growth while protecting existing customers from higher costs.
The company expects the investment to create jobs, expand Indiana’s tax base and strengthen the region’s workforce. See More: Top Value Stocks Power Infrastructure And Battery Storage The agreement will add approximately 1,100 MW of generation resources to GenCo’s portfolio.
Additionally, NiSource plans to upgrade NIPSCO’s transmission network to improve grid reliability and support growing electricity demand. GenCo has also secured 600 MW of battery storage through a long-term tolling agreement.
An affiliate of AGP Group will develop and construct the facility. The storage capacity will support multiple large electricity customers within GenCo’s resource portfolio.
Microsoft’s senior director of energy markets, Jeff Riles, said the agreement reflects the company’s commitment to covering its own energy costs without increasing electricity prices for other customers. NiSource plans to provide additional financial and operational details during its third-quarter earnings call.
NI Earnings And Analyst Outlook NiSource is scheduled to report earnings on Oct. 28.
27 billion in the prior-year period. 67.
Citigroup maintained a Neutral rating and lowered its forecast to $45 on Oct. 14, while KeyBanc maintained Overweight and cut its forecast to $48 on Oct.
13. Scotiabank initiated coverage at Sector Perform with a $43 forecast on Sept.
29. 27 at the time of publication on Friday, according to Benzinga Pro data.
