Utility NiSource ramps up spending to tap rising data center demand

NiSource

29/10/2025 11:57

Oct 29 (Reuters) - U.S. electric and gas utility NiSource NI.N on Wednesday raised its long-term growth targets, banking on gains from increased capital spending over this decade, including a multibillion-dollar investment push toward data centers.

The Indiana-based utility unveiled a $28 billion consolidated capital expenditure plan through 2030. Of this, about $7 billion would be dedicated to data center infrastructure, reflecting the growing power demand from digital and AI expansion.

The revised plan marks a 45% increase, or about $8.6 billion more than its prior five-year spending outlook, and supports a projected 8%-9% adjusted EPS compound annual growth rate from 2026 to 2033.

NiSource said it now expects 2026 adjusted profit between $2.02 and $2.07 per share, compared with its reaffirmed 2025 range of $1.85 to $1.89.

It also extended its long-term base growth plan through 2030, targeting annual adjusted earnings per share growth of 6% to 8%.

Power demand in the United States is expected to hit record highs in 2025 and 2026, the U.S. Energy Information Administration says, citing growth from AI and cryptocurrency data centers and broader electrification.

NiSource serves about 3.3 million natural gas customers across six states and roughly 500,000 electric customers in Indiana.

It reported quarterly profit of 19 cents per share for the three months ended September 30, narrowly missing analysts' average estimate of 20 cents, according to data compiled by LSEG.

 (Reporting by Khusbu Jena in Bengaluru; Editing by Leroy Leo)

 ((Khusbu.Jena@thomsonreuters.com;))