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Mayor says NIPSCO has limited megawatts as city pursues data center; councilor raises electricity delay affecting Clarkfield builders

July 02, 2025 | Hammond City, Lake County, Indiana


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Mayor says NIPSCO has limited megawatts as city pursues data center; councilor raises electricity delay affecting Clarkfield builders
Mayor Tom McDermott told the Common Council that Northern Indiana Public Service Company (NIPSCO) has a limited supply of megawatts available and that data-center developers are seeking far more capacity than the utility can currently offer.

“We had a good meeting,” the mayor said after meeting with Vince Parisi, CEO of NIPSCO. “NIPSCO is playing a very important role in data center development. They have limited amount of megawatts available, and the data centers are looking in for about 20 times more than the megawatts that are available from NIPSCO.” He emphasized the importance of maintaining a working relationship with the utility as the city pursues a major data-center proposal.

Separately, Councilman Quincy raised concerns about the Clarkfield residential project, reporting builders told him electricity for completed shells would not be available until July or August. The mayor said he was surprised by the claim and promised to follow up, noting a Hammond resident who is a NIPSCO director could assist: “Rick Kalinski is a director at NIPSCO. He's a Hammond kid ... so I'll reach out to Rick. I would be shocked if that turns out true, councilman.”

Why it matters: Both items bear on local infrastructure. Data centers require large electrical capacity that can affect utility planning and local permitting; delayed residential power at a development can halt construction, raise costs and slow occupancy.

Other context in the meeting: The mayor also described meetings with potential data-center financiers and economic-development staff promoting city projects at an upcoming industry convention. He called the potential data center “a game changer” if approved and reiterated the city’s interest in working with NIPSCO to secure necessary capacity.

Next steps and information: The mayor said he will follow up with NIPSCO contacts to confirm whether the Clarkfield builders' reported schedule is accurate and to press for clarity on capacity issues for both residential development and large commercial loads such as data centers.

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Scribe from Workplace AI
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