The following information regarding the source of power for the Hobart Data Centers has been found online, however, since we are a local Northwest Indiana company, we thought it was pertinent to publish this information intended solely for local educational purposes.
A Northern Indiana Public Service Co. affiliate, known as NIPSCO Generation (GenCo), intends to develop up to 3 gigawatts of natural gas–fired power and battery storage to support planned Amazon data centers, the companies announced Monday. Along with new electric transmission infrastructure to be constructed by NIPSCO, the total investment is expected to reach approximately $7 billion.
Under the agreement, GenCo aims to construct two 1.3-GW natural gas power plants along with a 400-MW, four-hour battery storage system to supply the data centers, according to filings with the Indiana Utility Regulatory Commission. By comparison, NIPSCO projects that its non–data center electricity demand in 2028 will be around 2.3 GW. (Genco does not have a website, information about GenCo’s projects and regulatory filings is managed directly through the NIPSCO and NiSource websites)
On Nov. 19, the Indiana Utility Regulatory Commission reaffirmed its September decision to approve the GenCo framework, which is intended to ensure that Northern Indiana Public Service Co.’s existing customers are not responsible for covering the cost of infrastructure needed to serve hyperscalers such as Amazon. Under this framework, GenCo will own and operate power plants dedicated to large-load customers.
NIPSCO, a NiSource subsidiary, expects its 15-year deal with Amazon will produce about $1 billion in savings for its ratepayers. Those savings will be reflected as a credit on customers’ electric bills, according to a Nov. 7 filing by NIPSCO and NIPSCO Generation at the IURC. Residential customers will receive roughly $7 in monthly savings, according to the utility.
The companies have asked the Indiana Utility Regulatory Commission to approve a “special contract” along with a power purchase agreement tied to the arrangement with Amazon. Although the filings with the commission do not explicitly name Amazon, details such as capacity, capital investment levels, and projected ratepayer savings align with Genco’s announcement on November 4th, 2025.
The contract calls for NIPSCO to begin providing power and capacity to Amazon data centers by Jan. 1, 2027, with deliveries climbing up to 2.4 GW by the end of 2032, Vincent Parisi, NIPSCO president, chief operating officer and CEO, said in an IURC filing.
Under the arrangement, NIPSCO will buy the power to serve the Amazon data centers through a PPA with GenCo. The Federal Energy Regulatory Commission will also have to approve the PPA. GenCo plans to seek separate IURC approval for any generation it builds for Amazon.
The contract gives Amazon a one‐time option, by March 31, 2029, to reduce its total capacity by 1,200 MW, according to NIPSCO.
NIPSCO will build, own and operate transmission infrastructure needed to serve the Amazon data centers, according to the application. The costs for the transmission will be kept separate from the utility’s rate base and not flow through to its existing customers, the utility said.
NIPSCO and GenCo asked the IURC to approve the special contract and PPA by May 6.
GenCo is in talks to supply up to 3 GW to additional data center customers, with another 3 GW of “developing opportunities,” NiSource said in an Oct. 29 investor presentation.
Citizens Action Coaltion is reviewing the proposal, with an eye toward ensuring that ratepayers won’t be harmed by the arrangement, according to Ben Inskeep, a program director at the advocacy group.
”We will vigorously advocate to protect residential customers from risks and ensure they see significant affordability benefits, rather than more rate hikes, with the addition of large load customers,” Inskeep said..
In the last two years, NIPSCO has increased residential bills by $77 a month for customers using 1,000 kWh, resulting in the highest electric bills in the state and also in the country, Inskeep said.
Also, the 2.6-GW of gas-fired generation GenCo plans to build at its coal-fired Schahfer power plant site could produce nearly four times the amount of greenhouse gas emissions that the existing Schahfer coal plant emitted in 2023, according to Inskeep.
“It is outrageous that none of the electricity to serve the 2.4 GW of data center load will come from additional renewable energy or energy efficiency,” Inskeep said.
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