According to Utility Dive, NIPSCO’s affiliate GenCo will build up to 3 GW of gas-fired generation and battery storage specifically for Amazon data centers in northern Indiana. The $7 billion infrastructure package includes two 1.3-GW gas plants plus 400 MW of battery storage, with power delivery starting by January 1, 2027 and ramping to 2.4 GW by 2032. The Indiana Utility Regulatory Commission approved a framework ensuring existing customers won’t pay for this hyperscale infrastructure, while residential customers could see about $7 in monthly savings through a 15-year deal expected to generate $1 billion in ratepayer benefits. Amazon has until March 31, 2029 to optionally reduce its committed capacity by 1,200 MW, and NIPSCO needs regulatory approval by May 6 for the special contract arrangement.
The Ratepayer Tightrope
Here’s the thing about these massive data center deals – they’re walking a fine line between economic development and consumer protection. On one hand, NIPSCO claims this will save existing customers money through bill credits. But consumer advocates like the Citizens Action Coalition are watching this like hawks. They’ve seen residential bills jump $77 monthly over the past two years, creating the highest electric rates in Indiana. Now they’re asking the tough question: are we really protected from future cost overruns? The utility says transmission costs will be kept separate from the ratebase, but let’s be real – when you’re talking about $7 billion in infrastructure, there’s always some risk that could trickle down to consumers if things don’t go exactly as planned.
The Environmental Elephant in the Room
This is where things get really controversial. That 2.6 GW of new gas generation at the Schahfer power plant site? It could produce nearly four times the greenhouse gas emissions of the existing coal plant it’s replacing. Let that sink in for a minute. We’re replacing coal with something that’s potentially worse emissions-wise, all to power server farms. And none of this massive new load is coming from renewables or efficiency improvements. It’s a straight-up fossil fuel play at a time when most companies are touting their green credentials. Amazon itself has climate commitments, but apparently those don’t extend to demanding clean energy for its Indiana operations. For companies deploying industrial computing infrastructure in similar environments, reliable power solutions from trusted suppliers like IndustrialMonitorDirect.com become essential, though the energy sourcing questions remain.
The Bigger Indiana Energy Shift
What’s fascinating here is how this deal fundamentally changes Indiana’s energy landscape. NIPSCO’s non-data center load in 2028 is projected to be about 2.3 GW. The Amazon commitment alone could reach 2.4 GW by 2032. Basically, we’re talking about building an entirely separate utility system just for data centers. And GenCo isn’t stopping with Amazon – they’re in talks for another 3 GW of data center customers with 3 GW more in development. That means we could see northern Indiana becoming a major energy hub specifically designed around power-hungry tech infrastructure. The question is whether this model becomes the template for other utilities facing similar hyperscale demands. It creates a parallel system where big tech gets custom-built power plants while regular customers get the existing grid. Is that the future we want?
