NiSource: A Premier Play On Data Center Electricity Demand

NiSource (NI) remains a 'buy' as its innovative data center agreements, notably with Amazon, position it for sustained growth and regulatory favor. NI's model isolates data center capex and returns, protecting existing customers from rate hikes while securing guaranteed returns and surcharges to reduce bills. With a $29B five-year capex plan and at least 8% projected EPS growth, NI offers a compelling blend of income and growth. Shares yield 2.5% with expected low double-digit total returns, underpinned by robust capital programs and accelerating data center demand.

Shares of NiSource ( NI ) have been a solid performer over the past year, gaining over 20%. It has been a favorable environment for utilities as incremental demand from data centers is creating a meaningful medium-term