NI: Focus on the (Datacenter) Fundamentals. Initiating at Outperform, PT $52

Research evidence excerpt

NI: Focus on the (Datacenter) Fundamentals. Initiating at Outperform, PT $52

ranking relative to large cap peers, we see room for Div Yield 2.4% 2.5% 2.6% 2.7%

further multiple expansion as the data center opportunity becomes better

understood and management executes on near-term announcements. AllPricedvaluesas ofin priorUSD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

Indiana stands out as one of the most attractive data center markets in

the Midwest, and we believe NIPSCO is the primary beneficiary. Regional

opposition is most in nearby WI, IL, and OH, where governors in all three

states have suspended or moved to eliminate data center tax incentives.

No equivalent legislation has passed in Indiana, and Gov. Braun (not up

for re-election this cycle) remains a vocal supporter. Microsoft announced

plans in April 2026 to expand its NIPSCO-served LaPorte facility from 6 to

17 buildings, and Amazon continues to grow its in-state footprint. We are

tracking multiple facilities in NIPSCO's service territory with combined peak

load >1GW, along with multiple sites that have begun mass grading activity

- see body of note for satellite imagery progression. We believe material

announcements are likely coming in the near term.

Affordability has emerged as a key area of focus in Indiana, but we believe

NIPSCO has a credible path to thread the needle. Gov. Braun removed

his IURC Chairman in June 2026 after a utility rate increase he called

unacceptable, and his replacement has signaled closer scrutiny of future

requests. Considering this, NIPSCO will need to navigate this environment

with care given that it carries the highest electric rates among Indiana’s

IOUs. Three factors give us confidence: NIPSCO’s electric rate case was