VALLEY FORGE, PA — UGI Corporation (NYSE: UGI) and Prime Data Centers are partnering on a natural gas infrastructure project in Pennsylvania’s northern tier to support what the companies described as one of the state’s largest planned artificial intelligence and high-performance computing developments.
Under the agreement, UGI Energy Services will sell property to Prime for construction of a proposed gas-fueled electric generation facility tied to future hyperscale data center operations. UGI will retain underground gas storage capacity and associated oil and gas rights connected to the site.
The companies did not disclose the project’s location, financial terms or expected timeline for construction. UGI Energy Services President Joseph Hartz indicated the company’s planned investment in related infrastructure could exceed $100 million.
Prime’s projected natural gas demand is expected to surpass 100,000 dekatherms per day within three to five years, reflecting the growing energy requirements tied to AI computing and large-scale data center operations.
The project highlights increasing efforts by technology developers and utilities to secure dedicated power generation capacity as demand for AI infrastructure accelerates nationwide.
UGI and Prime pointed to the region’s access to Marcellus Shale natural gas production and existing interstate pipeline systems, including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline, as key advantages for supporting continuous power supply to data center facilities.
“This kind of infrastructure is necessary for our energy security, will create good jobs, and drive real economic growth for rural communities,” U.S. Sen. Dave McCormick said.
Prime develops and operates hyperscale data centers internationally, while UGI Energy Services manages midstream energy assets including natural gas storage, transportation and distribution infrastructure.
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