Manufacturing News
October 17, 2026
October 17, 2026 · Morgan County · Story 2 of 5
IURC Approves AES-Google $737 Million Monrovia Data Center Plan
The commission unanimously approved AES Indiana's plan to build $737.3 million in solar, battery storage, and transmission infrastructure to serve a 390-megawatt Google data center in Monrovia, Morgan County. This is the first case decided under Indiana's 2025 large-load law, House Enrolled Act 1007, under which large-load customers must bear a minimum of 80% of the costs allocated to them. Generation comes from three projects built by Invenergy and AES across Pike, Lake, and Clinton counties, connected by a new 10-mile, 345-kilovolt line. Google is paying $32.3 million directly for its own connection facilities and has agreed to a 15-year contract with a $300 million fixed-cost floor, well above the statutory minimum. But the commission placed $73.8 million in broader network upgrades into AES's transmission rate base, over the objection of the Citizens Action Coalition, which argued the data center, not other ratepayers, should cover those costs. That $73.8 million allocation is the first precedent set under HEA 1007, and every future large-load filing in Indiana will point back to it. NiSource is pursuing its own Amazon and Microsoft data center deals, so AES is not the only utility setting these terms for your rate class. The original Google contract terms are covered in AES Indiana Locks Google Into $1.3B Infrastructure Deal, and the acquisition tangled up in the rate case is covered in AES Indiana's BlackRock Buyout Reaching FERC.
- Impact
- This order is the first live test of Indiana's 'hyperscaler-pays' framework, and the $73.8 million rate-base decision sets the cost-allocation template every future HEA 1007 filing will cite -- Citizens Action Coalition's Ben Inskeep already flagged it as the precedent that matters more than this single case. It also arrives while the IURC is simultaneously reconsidering AES's base rate case tied to the BlackRock-led acquisition of its parent, giving regulators unusual leverage over deal terms mid-acquisition; meanwhile NiSource is countering with its own Amazon (3 GW) and Microsoft (1,100 MW) deals, meaning AES doesn't have a monopoly on Indiana's data center buildout.
- Watch
- The IURC's rate-case rehearing continuing into 2027, which will weigh evidence tied to both the Monrovia deal and the BlackRock acquisition.
- For the huddle
Google locked in a 15-year minimum contract with a $300 million fixed-cost floor and 100% cost coverage above the statutory 80% minimum -- could our facility negotiate similar large-load protections under HEA 1007, or are we too small to get AES's attention the way Google did?
Sources
Earlier coverage
From the brief, October 17, 2026
- AES Indiana Rate Hike Rehearing Set for Early March
- IURC Approves AES-Google $737 Million Monrovia Data Center Plan
- Winnebago Cuts 51 More Jobs in Forest City as Middlebury Consolidation Lands in Indiana
- EPA Rolls Back Power Plant Rules While NIPSCO and CenterPoint Keep Coal Running Past Retirement
- Indiana American Water Finishes $24.5 Million Gary Main Overhaul
This story
Related
- Wright Industries' Goshen Indiana Ambulance Manufacturer Expansion Leads This Week's Indiana Manufacturing News
- AES Indiana's BlackRock Buyout Rate Case, Samsung SDI's New Carlisle Takeover, and the Patrick-LCI Bid War: What Indiana Manufacturers Need to Track This Week
- Nucor's $105 Million Crawfordsville Expansion, AES Indiana's Rate Increase, and Amazon's $100 Million Greenwood Plant: What Indiana Manufacturers Need to Track This Week
Manufacturers Energy Grant Program
Free for Morgan County manufacturers
Morgan County manufacturers receive free, ongoing energy auditing and cost control that reduces their energy bills and keeps them low, month after month. Every line item checked and validated, every opportunity found comes with a step-by-step guide to capture it.
EDCs: sponsor this program and it carries your organization's name For economic developers →

