UGI to Build Pipeline for Pennsylvania AI Data Center Campus

UGI Energy Services plans to build new natural gas infrastructure in Pennsylvania to support a large-scale AI and hyperscale data center campus developed by Prime Data Centers.

(P&GJ) — UGI Energy Services and Prime Data Centers have partnered on a natural gas infrastructure project in Pennsylvania aimed at supporting a large-scale AI and high-performance computing campus in the state’s northern tier.

Under the agreement, UGI Energy Services will develop dedicated natural gas infrastructure, including a proposed pipeline and associated facilities, to supply an on-site gas-fired power generation complex planned by Prime Data Centers.

Prime’s natural gas demand is expected to exceed 100,000 dekatherms per day within three to five years, highlighting the growing energy requirements tied to hyperscale AI and data center development.

UGI said the project could involve more than $100 million in planned midstream investment.

The site also includes access to underground gas storage capacity and proximity to major interstate pipeline systems, including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline.

UGI Energy Services President Joseph Hartz said the region’s natural gas production and pipeline connectivity position the project well for long-term energy supply and infrastructure development.

Prime Data Centers CEO Nicholas Laag said the partnership is intended to support the next generation of AI and high-performance computing operations in Pennsylvania using direct access to Marcellus Shale natural gas resources.

The companies said the project is designed to provide long-duration energy reliability and multiple supply pathways for future data center operations.