Plans are under way for a new natural gas supply infrastructure to be developed in Pennsylvania’s northern tier that will support a large-scale data center and power generation project tied to growing artificial intelligence (AI) and high-performance computing demand.
“Pennsylvania has the fourth-largest natural gas reserves in the world, and this partnership puts that resource to work where it matters most — securing America’s energy future and leading the global AI race,” U.S. Sen. Dave McCormick (R-PA) said Wednesday. “This kind of infrastructure is necessary for our energy security, will create good jobs, and drive real economic growth for rural communities that have always been the foundation of Pennsylvania’s energy strength.
“Pennsylvania has the energy, the skilled workers, and the will to lead,” added the congressman. “This project proves it.”
UGI Corp. and Prime Data Centers LLC announced their partnership May 6 to develop the project.
Specifically, the agreement calls for UGI subsidiary UGI Energy Services to sell property to Prime Data Centers for construction of a proposed gas-fueled electric generation facility. UGI said it will retain roughly 15 billion cubic feet of underground gas storage capacity and related oil and gas rights tied to the site.
The companies said the project is designed to provide long-duration energy capacity and on-site reliability for future hyperscale data center operations.
“This is a significant milestone for UGI Energy Services and a strong fit for our midstream capabilities, where we anticipate that our planned investment could be in excess of $100 million,” said Joseph Hartz, president of UGI Energy Services. “As energy demands continue to grow, the northern tier’s direct access to locally produced natural gas and multiple interstate pipeline systems makes this a well-positioned project.”
Prime Data Centers — which expects its natural gas demand to surpass 100,000 dekatherms per day within three to five years — agreed that Pennsylvania’s access to Marcellus Shale gas reserves and existing pipeline infrastructure made the region attractive for expansion.
“Pennsylvania’s northern tier offers a rare combination of direct Marcellus Shale access, robust pipeline infrastructure, and a business environment that welcomes large-scale energy and technology investment,” said Nicholas Laag, CEO of Prime Data Centers. “Together, we are building the energy backbone that will power the next generation of AI and high-performance computing in Pennsylvania.”
The companies said the region benefits from access to interstate pipeline systems including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline, as well as the UGI Utilities distribution network, providing multiple supply routes for large industrial energy users.