NiSource IncNI
Price$39.50Intrinsic value$41.405% above price

Qualitative Analysis

Business overview

Business Overview

NiSource Inc. (NYSE: NI) is one of the largest fully regulated utility companies in the United States, serving approximately 3.3 million natural gas customers and 500,000 electric customers across six states under the Columbia Gas and NIPSCO brands. The company operates through two primary segments: Gas Distribution Operations and Electric Operations. NiSource's growth strategy is centered on a multi-year, rate-regulated utility infrastructure investment plan of approximately $19.4 billion to $20 billion over five years, focusing on system modernization, pipeline replacement, and electric grid reliability.

Research as of 19 Jun 2026

Sources: 1

Strategic Initiatives

Growth programs, investments, and their expected impact

AI-assisted
GenCo Data Center Infrastructure StrategyGrowth

Establishment and expansion of NIPSCO Generation LLC (GenCo), a standalone entity designed to own, build, and manage generation assets to serve the growing data center industry in Northern Indiana without shifting costs to regular retail customers.

Expected impact: Expected to generate approximately $1.25 billion in cost savings to be passed back to existing NIPSCO electric customers over the contract lives, while driving consolidated adjusted EPS CAGR to 9%-10% through 2033.

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InvestmentNearly $7.0 billion in strategic data center infrastructure investments over the 2026-2030 period.
Timeline2026-2030 and beyond, with service for major partners starting in 2026.
Electric Generation Transition (Decarbonization)Transformation

Transitioning NIPSCO's electric generation portfolio by retiring coal-fired generation assets and installing new renewable generation, including solar, wind, and battery storage.

Expected impact: Targeting Net Zero Scope 1 and Scope 2 greenhouse gas emissions by 2040, a 90% Scope 1 reduction by 2030, and approximately $1.25 billion to $1.4 billion in customer savings through clean generation replacement and data center agreements.

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Investment$2.0 billion
TimelineTargeting 0% coal-fired generation mix by retiring the Schafer plant at year-end 2025 and the Michigan City unit in 2028.
Sources: 5

Mergers, Acquisitions & Partnerships

Recent deals and strategic collaborations

AI-assisted

Strategic Partnerships

Blackstone Infrastructure PartnersEquity Investment / Joint Venture

Blackstone acquired a 19.9% minority equity interest in NIPSCO Generation LLC (GenCo) to fund the energy transition and accelerate data center infrastructure development in Northern Indiana.

Terms: $1.5 billion equity commitment and accompanying acquisition of a 19.9% ownership interest in GenCo, completed in October 2025.

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Amazon Data Services, Inc.Long-term Energy Agreement

A groundbreaking electric service agreement to supply up to 3 gigawatts of capacity for Amazon data center sites in NIPSCO's Northern Indiana service territory.

Terms: Underpinned by a nearly $7 billion investment in energy infrastructure, including two 1,300-megawatt combined-cycle natural gas-fired turbines and 400 megawatts of battery storage under a fixed-rate, 15-year contract.

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Alphabet Inc. (Google)Long-term Energy Agreement

A long-term energy agreement to support the development and operation of a large-scale data center in northern Indiana, leveraging the GenCo model to protect existing customers from cost increases.

Terms: Service expected to begin in summer 2026, utilizing a GenCo-owned pooled portfolio of electric generation assets and market capacity purchases.

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Sources: 4
AI-assisted, source-linked narrative; figures from company filings (SEC EDGAR) and market data. Dates shown per section. Not investment advice. Terms of Use.