PA Environment Digest Blog: UGI Energy Services, Prime Data Centers Announce $100 Million Partnership To Develop New Natural Gas Infrastructure For A Power Plant To Feed A.I. Data Center Development, Likely In Cameron, Potter Or Tioga Counties

On May 6, UGI Energy Services, LLC and Prime Data Centers, LLC, a leading international developer and owner of hyperscale A.I. data centers, announced a strategic partnership to develop major natural gas supply infrastructure in Pennsylvania’s northern tier, in support of one of future hyper scale data center operations.

Under a purchase and sale agreement, UGI Energy Services will sell Prime Data Centers property to build a proposed on-site, natural gas-fueled electric generation facility.

UGI will retain approximately 15 billion cubic feet of underground storage capacity and oil and gas rights associated with the property.

The project is expected to support on-site energy resilience and long-duration capacity for future data center operations.

On May 7, Marcellus Drilling News reported the announcement and added UGI has three natural gas storage facilities located in Cameron, Potter and Tioga counties which have a combined storage capacity of 14.7 billion cubic feet of natural gas.

Prime’s natural gas demand is expected to exceed 100,000 dekatherms per day within three to five years - a scale that underscores the importance of the project for the region’s energy infrastructure.

"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. We're proud to partner with Prime Data Centers, and 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. We look forward to helping power what will be a landmark investment for Pennsylvania," said Joseph Hartz, President, UGI Energy Services.

"Prime Data Centers is thrilled to partner with UGI Energy Services. 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 — and UGIES brings the midstream expertise and operational scale to match our ambitions. Together, we are building the energy backbone that will power the next generation of AI and high-performance computing in Pennsylvania," said Nicholas Laag, Chief Executive Officer, Prime Data Centers.

“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 A.I. race. 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. This project proves it,” said PA U.S. Senator Dave McCormick.

The northern tier of Pennsylvania is rich with natural gas, providing a significant, built-in energy resilience advantage and long-duration supply security that few data center developments can match.

Additionally, major interstate pipeline systems, including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline, as well as the UGI Utilities distribution network, maintain a presence - offering multiple, redundant supply pathways critical to meeting the continuous and growing energy demands of hyperscale data center operations.

Click Here for the UGI-Prime Data Center announcement.

(Map: Shows municipalities with natural gas storage fields in blue, from DEP.)

NewsClip:

-- Marcellus Drilling News: UGI Selling Property, Partnering With Prime To Building PA Data Center

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