Microsoft confirmed a 20‑year electricity agreement with utility NiSource to support its planned data centre campus in La Porte, Indiana, moving the project toward construction.

The agreement creates a dedicated power‑supply framework for the campus, including commitments to expand generation, transmission and battery storage infrastructure.

NiSource expects to begin delivering electricity to the site in 2028, aligning with Microsoft’s anticipated start of operations.

The power portfolio covered by the deal totals roughly 1.1 GW, according to Data Center Dynamics.

NiSource’s generation subsidiary, GenCo, will add capacity and has contracted 600 MW of battery storage through a tolling agreement with an AGP Group affiliate.

The new rate structure requires large‑load customers like Microsoft to fund the generation and infrastructure needed for their facilities, aiming to protect existing ratepayers from additional costs.

NiSource President Lloyd Yates said the arrangement balances economic development with affordability for other customers, while Microsoft’s senior energy director Jeff Riles stressed the company will pay its own way and support regional growth.

Microsoft originally announced a $1 bn investment for a 489‑acre site at Radius Industrial Park in 2024, with an initial plan for six data centres and a substation.

In April 2026 the company expanded the layout to 17 buildings across a larger parcel bounded by East 250 South, East State Road 4 and Stevens Road, though it has not disclosed how many will serve as data centres.

Financial details of the power contract and a separate construction budget for the expanded campus have not been disclosed.