• In June 2026, NiSource Inc. reported that the Indiana Utility Regulatory Commission approved its agreements and power purchase deal supporting Amazon’s new data center developments in northern Indiana, along with new gas-fired generation and battery storage resources.
• The approved framework is structured so data center customers cover the cost of the required infrastructure, with NiSource expecting existing NIPSCO customers to share in about US$1.40 billion of projected savings and benefit from faster regulatory timelines for future data center agreements.
• We’ll now examine how this approval of Amazon-linked data center infrastructure, and its projected customer savings, may influence NiSource’s investment narrative.

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NiSource Investment Narrative Recap

To own NiSource, you need to believe that regulated electric and gas infrastructure, backed by constructive regulators, can still earn a fair return while funding heavy modernization. The Amazon data center approval reinforces the near term catalyst of load growth tied to large customers, while also highlighting the key risk that NiSource must keep regulators supportive of cost recovery and rate designs as capital needs stay high.

The most relevant prior announcement is NiSource’s April 2026 deal to serve an Alphabet data center in northern Indiana through its GenCo structure. Together with the Amazon framework, it underpins the load growth and regulatory approvals catalyst, but it also increases NiSource’s exposure to potential delays or setbacks in future rate and project rulings across its multi year, US$19.4 billion base capital plan.

Yet investors should also consider the risk that if regulatory approvals slow or become less favorable, those projected customer savings and earnings contributions could...

NiSource’s narrative projects $8.2 billion revenue and $1.3 billion earnings by 2029. This requires 6.2% yearly revenue growth and roughly a $337.5 million earnings increase from $962.5 million today.

Uncover how NiSource's forecasts yield a $51.36 fair value, a 8% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s three fair value estimates span roughly US$35.97 to US$51.36 per share, showing how far individual views can stretch. Some focus on the approved data center load growth as a key driver, while others are more cautious about NiSource’s large, ongoing capital needs and the possibility that future rate decisions could affect how much of that spending is ultimately earned back.

Explore 3 other fair value estimates on NiSource - why the stock might be worth 24% less than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your NiSource research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free NiSource research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NiSource's overall financial health at a glance.

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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.