유틸리티 기업 나이소스(NI)는 아마존과 알파벳의 데이터 센터 확장 수요를 지원하기 위한 새로운 전력 구매 계약(PPA)을 체결했다.
NiSource Inc. reported second-quarter 2026 adjusted earnings that exceeded estimates but fell year over year, while simultaneously securing regulatory approvals for special data center contracts with Amazon and Alphabet that are expected to deliver significant savings for existing customers. By reaffirming its 2026 consolidated adjusted earnings guidance and advancing a large, multi-year capital investment plan, NiSource is explicitly tying its long-term regulated utility growth to the expanding power demands of data centers and broader grid modernization.
These new agreements are actively reshaping NiSource’s long-term investment narrative. Investing in the company requires confidence in a regulated utility that is heavily funding grid and gas system modernization while gradually aligning with large-scale data center demand. The recent earnings beat, paired with a year-over-year decline and reaffirmed 2026 guidance, suggests the Amazon and Alphabet contracts do not materially alter the near-term outlook. The primary catalyst remains timely cost recovery on the capital plan, while the most significant current risk is regulatory pushback on gas-focused investment.
The most relevant recent development is the Indiana regulator’s approval of NiSource’s agreements supporting Amazon’s data center load, including the special contract and related generation resources. Management highlights a framework designed to protect existing customers and deliver approximately US$1,400 million in bill savings. This directly supports the near-term catalyst of constructive rate treatment, while raising longer-term questions about whether regulators will continue to endorse this level of grid and generation spending. Despite these approvals, the large, gas-heavy capital plan continues to leave NiSource exposed to regulatory and execution risks.
NiSource’s current narrative projects US$8.4 billion in revenue and US$1.3 billion in earnings by 2029. Achieving this trajectory requires 6.8% yearly revenue growth and a US$394.0 million earnings increase from US$906.0 million today. Based on these forecasts, the company’s implied fair value stands at US$50.03, representing a 21% upside to its current price.
Market perspectives vary significantly. Fair value estimates from the Simply Wall St Community span roughly US$35.97 to US$50.03, illustrating the divergence in individual valuation models. Investors must weigh these against the recent data center approvals and ongoing grid and gas investment needs, which will collectively shape how comfortably NiSource can support its earnings targets over time. Alternative community analyses suggest scenarios where the stock might be valued 13% below current levels. For independent due diligence, NiSource’s fundamentals can be evaluated through a comprehensive Snowflake analysis that consolidates three key rewards, three important warning signs, dividend metrics, insider trades, and overall financial health into a single visual framework.
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This article is general in nature. Commentary is based on historical data and analyst forecasts using an unbiased methodology. Articles are not intended as financial advice and do not constitute a recommendation to buy or sell any stock, nor do they account for individual objectives or financial situations. The aim is to deliver long-term focused analysis driven by fundamental data. Note that this analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Valuation is complex, but detailed breakdowns featuring fair value estimates, potential risks, dividends, insider trades, and financial condition are available to determine whether NiSource is undervalued or overvalued. For feedback or content concerns, please contact editorial-team@simplywallst.com.