NiSource clears Indiana data center hurdle, shares in focus on the NYSE

By Thomas Klein, Operations & Strategy desk. Reviewed prior to publication on 2026-06-28, 09:58.

NiSource Inc. (US65473P1057) has gained regulatory backing in Indiana for power agreements linked to a major data center project, adding a fresh infrastructure angle to its regulated utility portfolio as the NYSE-listed shares remain a reference in the US gas and power sector.

Regulators back data center plans

NiSource’s Indiana subsidiary has obtained approval from state regulators for long-term energy service agreements that underpin a hyperscale data center development, a move reported in late June by US financial media as a notable expansion beyond traditional residential and industrial utility load. The project framework concentrates on firm electricity supply and grid upgrades, with contracts that are structured within NiSource’s regulated utility model and associated rate case oversight.

The approved agreements tie future electricity demand from a large cloud and e-commerce client to NiSource’s regional grid, with Indiana regulators emphasizing reliability standards and consumer protection alongside the added corporate load. The structure allows NiSource to recover eligible infrastructure investments through regulated tariffs while aligning the new data center consumption with broader state energy policy and capacity planning.

Analysts reassess the utility profile

Recent analyst commentary portrays NiSource as a US regulated utility combining stable gas distribution and electric service with emerging exposure to data center and AI-driven power demand, positioning the stock among peers such as Duke Energy and American Electric Power in discussions of grid investment needs. Consensus views compiled by market-data platforms in June show a majority of ratings in the Buy or Outperform range, with focus on predictable rate-based earnings and incremental upside from higher-capacity utilization in key service territories.

Analyst notes in late June highlight NiSource’s relatively modest valuation versus certain large-cap utilities and point to the Indiana data center approval as evidence that smaller regional names can still capture a share of hyperscale energy growth. Forecasts in these reports underline capital expenditure intensity over the coming years, particularly for grid modernization, pipeline integrity and renewable integration, with the data center agreements framed as an additional driver rather than a transformation of the core utility earnings mix.

How NiSource earns its money

NiSource derives the bulk of its revenue from regulated natural gas distribution and electric utility services across several US states, with Indiana representing a key integrated gas and power territory. The company’s Columbia Gas and NIPSCO-branded operations serve millions of residential and commercial customers, generating rate-based earnings from pipeline networks, generation assets and local distribution infrastructure under regulatory oversight.

Alongside core gas and power delivery, NiSource is investing in grid modernization, smart metering and pipeline integrity programs to reduce leak risk and improve system resilience. The newly approved data center agreements fit into this framework by monetizing incremental demand for high-availability electricity, while still keeping the company’s primary business model anchored in regulated utility returns and essential household energy services rather than merchant generation or unregulated trading.

Where the stock trades today

NiSource Inc. (US65473P1057) shares trade on the NYSE under the ticker NI, with the latest available closing price at 48.98 US dollars as of 2026-06-26, 16:00 Eastern.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any securities. Historical data and analyst opinions are subject to change without notice. Investors should conduct their own research or consult a licensed financial adviser before making investment decisions.