Exclusive-Alpha Compute to buy Pennsylvania land, gas rights for $55 million data center campus, company says
AI infrastructure company Alpha Compute plans to develop a 200-megawatt data center campus in northern Pennsylvania, acquiring land and natural gas rights for $55 million. The project, expected to begin operating in Q3 2027, will feature on-site gas-fired power generation, addressing the surging demand for AI computing and associated power needs. While local communities have been receptive, the project still requires local approvals and is subject to due diligence and financing.
AI infrastructure company Alpha Compute has signed a binding term sheet to acquire land and natural gas rights in Pennsylvania for $55 million to develop a 200-megawatt data center campus. CEO Brittany Kaiser announced that the facility, located in northern Pennsylvania, is expected to begin operating in the third quarter of 2027 and could eventually expand to generate one gigawatt of power.
The project combines data center development with natural gas production and on-site electricity generation, a strategy increasingly adopted by developers as utilities struggle to quickly connect large AI facilities to the grid. The deal includes undeveloped Marcellus gas rights covering about 1,800 mineral acres. Pennsylvania is a desirable location due to its natural gas resources, existing power infrastructure, and proximity to East Coast population centers.
Alpha Compute, a British Virgin Islands-incorporated company, is a recent entrant to data center development, with this Pennsylvania project marking its first U.S. venture. The initial $55 million investment for land and gas rights is expected to be followed by a $500 million build-out for the campus and electrical connections. The agreement is subject to due diligence, financing, permitting, and final agreements.
While local communities have reportedly been receptive to the proposal, the project will require local approvals. This comes at a time when some communities have tightened restrictions on data centers due to concerns over electricity and water demands. The exact location of the site has not been disclosed.