NiSource (NI) offers a combination of above-peer earnings growth and a favorable data center opportunity in Indiana that is not yet fully reflected in its share price, RBC Capital Markets said in a note Wednesday.

RBC said NiSource trades at a 7% to 8% premium to the peer group based on its 2030 earnings estimates, above its historical three-year forward premium of about 2% to 3%, but believes a premium of more than 20% is justified by continued upside from the company's GenCo structure.

The analyst expects NiSource to see about 10% EPS growth through 2030, compared with about 8% for peers, providing a growth advantage of about 200 basis points that RBC believes is not reflected in the current valuation.

RBC said Indiana is one of the most attractive data center markets in the Midwest and expects NIPSCO to be the primary beneficiary. The analyst said it is tracking multiple facilities in NIPSCO's service territory with combined peak load of more than 1 gigawatt and expects material announcements in the near term.

Despite the affordability pressures in Indiana, RBC believes NIPSCO has a credible path to manage the issue, citing the electric rate case approved in June 2025, a $1.4 billion customer savings commitment and a GenCo structure that keeps large-load capital outside the regulated rate base.

RBC initiated coverage of NiSource with an outperform rating and a $52 price target.