Microsoft signs 1,100 MW NiSource deal amid UK scrutiny

Microsoft is expanding its AI infrastructure through a long-term power agreement, while simultaneously facing increased regulatory attention in the UK and potential US Congressional scrutiny. The 1,100 MW, 20-year deal with NiSource is directly tied to Microsoft's AI and cloud strategy, as reliable power is needed to support AI demand across Azure and Copilot. At the same time, the UK CMA's move to label parts of Microsoft's business software as having strategic market status, alongside potential hearings involving Microsoft, Apple and Palantir, points to a more challenging policy environment. Future disclosures connecting AI data center expansion and power contracts to actual AI and Azure usage metrics will be key to assessing this balance.