Companies want to develop natural gas-powered data center in northern PA
UGI Corporation and Prime Data Centers have announced plans to develop a natural gas-powered data center in northern Pennsylvania, involving UGI selling property for an on-site gas-fueled electric generation facility. The project raises environmental and local zoning concerns, with experts highlighting the need for transparency and proper local oversight. While a specific county was not named, UGI operates natural gas storage facilities in Cameron, Potter, and Tioga counties.
UGI Corporation, an energy distribution company, and Prime Data Centers, a developer, have announced an agreement to build a large natural gas-powered data center in northern Pennsylvania. Under the plan, Philadelphia-based UGI will sell property to Prime Data Centers to establish an on-site gas-fueled electric generation facility, which will support future data center operations. The project is situated in Pennsylvania's "northern tier," an area rich in natural gas reserves, though a specific county has not been officially disclosed.
David Hess, a former secretary of the Pennsylvania Department of Environmental Protection, expressed concerns about the project's secrecy and potential location in municipalities that may lack adequate zoning or capacity to manage such large-scale developments. Hess highlighted the availability of model ordinances to guide local officials in evaluating such proposals and urged UGI and Prime Data Centers to be transparent with communities.
While UGI did not pinpoint a county, reports from Marcellus Drilling News indicate UGI maintains natural gas storage facilities in Cameron, Potter, and Tioga counties, which together hold nearly 15 billion cubic feet of natural gas. UGI intends to retain similar storage capacity and oil and gas rights related to the property. The energy company estimates its investment in the project could exceed $100 million.