Reports speculate on future development sites in region

UGI Energy Services and Prime Data Centers announced May 6 a partnership to develop new natural gas infrastructure in Pennsylvania’s northern tier to support growing energy demands tied to artificial intelligence and high-performance computing.

The announcement itself makes no reference to a data center being built in Cameron, Potter or Tioga counties. Rather, the project focuses on expanding pipeline and energy infrastructure in northern Pennsylvania to connect with existing interstate natural gas transmission systems.

Reports circulating online added speculation that future development could occur in Cameron, Potter or Tioga counties because UGI operates underground natural gas storage facilities in the region. Those facilities, combined with access to the Marcellus Shale and major interstate pipeline systems, make the area strategically important for energy transmission projects.

Under the agreement, UGI Corporation, through UGI Energy Services, will sell property to Prime Data Centers for construction of a proposed natural gas-fueled electric generation facility. UGI will retain underground gas storage capacity and associated oil and gas rights connected to the property.

The project is expected to strengthen connections to major interstate systems, including the Eastern Gas Transmission and Storage and Tennessee Gas Pipeline networks, which move natural gas throughout the eastern United States.

UGI President Joseph Hartz described the partnership as “a landmark investment for Pennsylvania,” citing the state’s abundant natural gas resources and existing infrastructure network.

Prime CEO Nicholas Laag said the agreement will help develop the energy infrastructure needed to support the next generation of AI and high-performance computing.