Northern Indiana Public Service Co. and an affiliate expect to spend about $7 billion on 2.6 GW of gas, 400 MW of storage and transmission — to be paid for by Amazon.

A Northern Indiana Public Service Co. affiliate — called NIPSCO Generation, or GenCo — plans to build up to 3 GW of gas-fired generation and battery storage to serve planned Amazon data centers, the companies said Monday. Combined with electric transmission to be built by NIPSCO, the companies expect to spend about $7 billion.

Under the arrangement, GenCo plans to build two 1.3-GW gas-fired power plants and a 400-MW, 4‐hour battery storage system to serve the data centers, according to filings at the Indiana Utility Regulatory Commission. In comparison, NIPSCO expects its non-data center load in 2028 will be about 2.3 GW.

The IURC on Nov. 19 reaffirmed a September decision to approve the GenCo framework, which is designed to ensure that NIPSCO’s existing customers don’t pay for infrastructure needed to serve hyperscalers like Amazon. Under the framework, GenCo will own and operate power plants for 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 IURC to approve a “special contract” and a power purchase agreement for the arrangement with Amazon. The filings at the IURC don’t name Amazon, but the details such as capacity, capital expenditure amounts and ratepayer savings match Monday’s announcement.

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