• NiSource (NYSE:NI) announced new and expanded partnerships with Amazon and Alphabet that are expected to support $1.4 billion in customer savings over 15 years.
• Alongside these partnerships, the company updated its long term adjusted EPS growth outlook to a range of 9% to 10% through 2033.

For investors watching utilities, NiSource stands out with a current share price of $47.02 and a 5 year return of 115.2%. The stock has also returned 21.9% over the past year and 83.7% over 3 years, indicating that the NYSE:NI story has already attracted sustained interest.

The new technology partnerships and longer term EPS growth outlook provide additional context for evaluating how NiSource plans to develop its regulated utility model. As more details emerge on execution and timing, the focus will be on how closely actual customer savings and earnings growth align with these newly stated ambitions.

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We’ve flagged 2 risks for NiSource. See which could impact your investment.

This data center focused move is important because it leans into a power hungry growth area while still keeping NiSource within its regulated utility core. The expanded Amazon agreement and new Alphabet contract are being framed as a way to create about US$1.4b of customer savings over 15 years, which helps NiSource argue that large load deals can benefit both big tech and residential customers. At the same time, management has lifted its long term adjusted EPS growth outlook to 9% to 10% through 2033 and reaffirmed 2026 guidance, linking these agreements to future earnings, not just headline megawatts.

How This Fits Into The NiSource Narrative

• The data center contracts line up with the narrative that growing electricity demand and economic development projects can support regulated revenue and earnings growth over time.
• The heavier tilt toward large power users could test assumptions around regulatory support and capital recovery, especially as peers like Duke Energy and American Electric Power also pursue data center loads.
• The specific customer savings figure of about US$1.4b and the long dated nature of the contracts may not be fully captured in existing narrative assumptions about how quickly new projects flow through to margins.

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The Risks and Rewards Investors Should Consider

• ⚠️ Interest payments are not well covered by earnings, so funding large projects for Amazon and Alphabet could tighten financial flexibility if conditions change.
• ⚠️ The dividend yield of about 2.5% is not well covered by free cash flow, which could matter if capital spending for data center and grid projects runs higher than expected.
• 🎁 Earnings grew by 10.9% over the past year, which supports management’s decision to raise the long term adjusted EPS growth outlook to 9% to 10% through 2033.
• 🎁 Earnings are forecast to grow about 10.3% per year, and the new agreements provide additional contracted load that fits with this growth focused plan.

What To Watch Going Forward

From here, the key questions are how quickly these data center projects move from announcements to in service assets and how regulators treat the GenCo structure and related rate cases. Watch for updates on Indiana regulatory approvals, timing of Alphabet’s northern Indiana facility ramp up, and whether additional large load customers are added to the portfolio. It is also worth tracking how interest coverage, free cash flow, and dividend coverage evolve as NiSource executes a large capital program tied to these agreements.

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community page for NiSource to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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