Amazon is effectively underwriting 3 GW of new “dispatchable” capacity in Northern Indiana to feed its expanding data center footprint, anchored by a 400 MW / 1.6 GWh BESS but dominated by 2.6 GW of new gas generation.
The BESS will sit on a former coal plant site and targets completion by January 2027, while Amazon’s draw from NIPSCO is expected to ramp to 2.4 GW by 2032, signaling just how power-hungry these data centers are.
Under a special contract, Amazon pays for the BESS, the gas plants, and necessary transmission, but the new GenCo subsidiary will own and dispatch the assets into MISO, creating a clear separation between this bespoke build and NIPSCO’s retail customers.
NIPSCO will buy power back from GenCo under a PPA to serve Amazon, a structure critics say dodges normal regulatory scrutiny and embeds long-lived fossil assets into the region’s grid mix.
For AI infrastructure, the signal is that hyperscalers will accept large gas buildouts alongside storage to get firm capacity fast, even where it directly conflicts with stated net-zero timelines.
This deal underscores how grid operators and utilities are bending governance and asset structures to prioritize hyperscaler loads over broader decarbonization pathways.
The article is worth a close read as a case study in how AI-era data center demand is reshaping utility investment, ownership models, and the balance between batteries and fossil generation.
