As demand for data and digital infrastructure accelerates across the country, utilities are facing a major challenge: how to power the future while protecting everyday customers. NIPSCO is meeting that challenge through a bold new model that drives affordability, reliability and responsible growth.
Through our IURC-approved GenCo structure, we are partnering with Amazon to deliver data center development in Indiana—while ensuring current residential and business customers are protected from the costs of serving the data center. This innovative framework is the first of its kind, positioning Northern Indiana as a leader in the rapidly expanding digital economy and setting a new standard for utility-technology collaboration.
Why GenCo? A Smarter Way to Grow to Benefit NIPSCO Customers
GenCo was created to allow NIPSCO to serve large customers like Amazon without shifting costs to existing NIPSCO customers. This structure is expected to provide value to customers by generating approximately $1 billion in cost savings that will be returned to current NIPSCO customers as credits on monthly electric bills over the project's 15-year duration.
By operating as a separate entity, GenCo isolates the cost of new growth to data centers. The data center companies that drive new demand for electricity will fund the generation and transmission infrastructure they require, ensuring that regular customers don’t shoulder those costs, even if the customer leaves before contract completion.
Amazon’s partnership with NIPSCO and GenCo is a cornerstone of this approach, enabling the development of data center campuses that will be powered by up to 3 gigawatts of new generation capacity to serve Amazon’s needs, with any excess generation enhancing grid reliability for all NIPSCO customers.
Powering a Winning Partnership for Indiana
GenCo’s and NIPSCO’s first major partnership represents a nearly $7 billion investment in energy infrastructure to power Amazon’s development of multi-billion-dollar data center campuses in Northern Indiana. It will create thousands of construction jobs and long-term economic opportunities for the region.
Beyond the economic impact, this collaboration demonstrates how NIPSCO and GenCo can attract transformative investment while maintaining a clear focus on safety, reliability and affordability for the communities they serve.
Strengthening the Grid for all Hoosiers
These investments will create a more resilient and flexible grid, one that’s ready to meet the power needs of both large-scale data center customers and everyday Hoosiers.
The capacity GenCo builds will make the system stronger and more resilient, helping NIPSCO continue to deliver safe, reliable service even as demand grows. It’s an investment in Indiana’s energy future and designed to support families and businesses for decades to come.
A Model for the Future
This first-in-the-nation approach shows what’s possible when innovation, partnership and responsible growth align. GenCo allows NIPSCO to meet rising demand, attract major investment and protect customers, all while reinforcing Indiana’s leadership in the energy and technology sectors.
Forward-Looking Statements
This document contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning our plans, strategies, objectives, expected performance, expenditures, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this presentation include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities, such as data center development and related generation sources and transmission capabilities to meet potential load growth; our ability to manage data center growth in our service territories; potential incidents and other operating risks associated with our business; our ability to work successfully with our third-party investors; our ability to adapt to, and manage costs related to,advances in technology, including alternative energy sources and changes in laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand; our ability to attract, retain or re-skill a qualified, diverse workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance and quality of third-party suppliers and service providers; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal, including any future associated impact from business opportunities such as data center development as those opportunities evolve; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; the actions of activist stockholders; any damage to our reputation; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs, including impacts of state and federal orders on our ability to carry out our business plan and growth strategy; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; our ability to construct, develop and place into service the generation and transmission assets we plan to construct to serve the customer under the data center contract (the “Contract Assets”) and any future data center customers on time or at all and consistent with initial cost estimates, as well as the performance of these assets once constructed and placed into service; our ability to obtain the significant additional financing that will be required to construct the Contract Assets and assets we may develop to support future data center contracts on favorable terms, if at all; our ability to recover our investments and realize our expected return under the data center contract and any future data center contracts; our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under the data center contract and any future data center contracts; our customers’ performance under the data center contract and any future data center contracts and any decision by our customer or future customers to terminate the data center contract or future data center contracts or reduce the committed capacity thereunder; potential changes in the MISO accreditation treatment of generation resources; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and matters set forth in our subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.
