From Seekingalpha · Grassroots Trading · · 40s
NiSource: Big Tech Power Deal
Big tech firms secure $40bn data center investments with NiSource utility.
In brief
Big tech firms secure $40bn data center investments with NiSource utility. NiSource Inc. (NI) has regulatory agreements with Amazon and Microsoft for $40 billion in data center investments, boosting long-term earnings growth to 10-11% by 2033. Originally reported by Seekingalpha.
NiSource's Big Tech Deals
NiSource Inc. has regulatory-approved agreements with hyperscalers like Amazon and Microsoft for a $40 billion investment plan.
Long-Term Growth Target
This plan boosts long-term earnings growth guidance to 10, 11% through 2033, despite trading at a premium valuation of 21.6x earnings.
Key Risks Ahead
High leverage (58.5% long-term debt/capital) and financing challenges make pullbacks preferable for adding exposure.
The takeaway
NiSource Inc. (NI) has regulatory agreements with Amazon and Microsoft for $40 billion in data center investments, boosting long-term earnings growth to 10-11% by 2033.
