NIPSCO's subsidiary GenCo expanded its deal with Amazon Web Services to provide an additional 400 megawatts of power for AWS' planned $15 billion investment in data centers in Northwest Indiana.
GenCo has now committed to supply 2,800 MW of power to the Amazon data center project, which is being built in Hobart, but which the company said may include secondary sites. The 2,400 MW data center was already expected by industry observers to become the nation's largest.
NIPSCO said it was able to negotiate a larger payment from the tech giant that will allow it to lower existing customers' bills by more.
"We have expanded our relationship with Amazon in two key ways: first, by increasing their load and investment within our service territory, and second, by accelerating the timeline," NIPSCO Communication Manager Jessica Cantarelli said. "These enhancements to the existing Amazon data center strategy help retail electric customers to realize savings sooner and ultimately increase total monthly bill savings to as much as $124 annually for our residential electric customers."
NIPSCO has also agreed to provide 300 MW to the new Google data center in Michigan City. The Merrillville-based gas and electric utility currently has a peak of 2,300 MW of electricity for its current customer base across Northern Indiana.
Through its GenCo spinoff, NIPSCO has pledged 3,100 MW of power to just two of several data center projects that have been proposed in Northwest Indiana. The utility plans to add 3,000 megawatts of new generation at the Schahfer Generating Station in Wheatfield.
"These contract amendments do not impact or hinder any current or future generation projects. For clarity, the assets included in the original agreement (two CCGTs and a battery energy storage system) are being developed to serve Amazon and are unchanged," Cantarelli said.
GenCo will develop more electric generation to keep up with data center demand, she said.
"In addition to those previously announced assets, Amazon will also be supported by pool resources developed and operated by NIPSCO GenCo. The NIPSCO GenCo portfolio provides capacity to large load customers through a shared generation pool designed to serve multiple customers, without dedicating any single asset or contract to any individual customer," Cantarelli said. "This diversified, long-term approach ensures reliable service and does not rely on any single facility or counterparty to meet customer demand."
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