A major infrastructure build is underway in Pennsylvania’s northern tier, where UGI Energy Services — a subsidiary of King of Prussia-based UGI Corporation — and Prime Data Centers, a Dallas-based hyperscale developer, have announced plans to construct a dedicated natural gas pipeline and one of the state’s largest artificial intelligence and high-performance computing facilities.
Under the agreement, UGI Energy Services will sell Prime Data Centers property on which Prime will build an on-site gas-fueled electric generation facility — a critical piece of infrastructure designed to deliver the kind of continuous, large-scale power that hyperscale AI operations demand. In parallel, UGI plans to invest in excess of $100 million to build out the dedicated natural gas supply infrastructure needed to feed the project, while retaining approximately 15 billion cubic feet of underground storage capacity and associated oil and gas rights.
Prime’s natural gas demand
The scale of what is being built is striking. Prime’s natural gas demand alone is projected to exceed 100,000 dekatherms per day within three to five years — a volume that would make it one of the most energy-intensive data center developments in the region. The on-site generation facility is designed to provide long-duration energy resilience, a critical requirement for the uninterrupted operations of hyperscale computing workloads.
The northern tier’s geography plays a central role in why this location was selected for construction. The area sits atop the Marcellus Shale formation and is already served by major interstate pipeline systems — including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline — alongside the UGI Utilities distribution network. That combination of locally produced natural gas and multiple redundant supply pathways gives the new infrastructure a built-in reliability advantage that few sites across the country can match.
Joseph Hartz, President of UGI Energy Services, described the pipeline buildout as a strong fit for the company’s midstream capabilities, noting that the northern tier’s direct access to locally produced gas and established pipeline corridors makes it a well-positioned project as energy demands from the technology sector continue to escalate.
Prime Data Centers expansion
For Prime Data Centers, the Pennsylvania project represents a significant expansion of its hyperscale footprint beyond its established markets in Texas, California, and Europe. CEO Nicholas Laag pointed to the rare convergence of Marcellus Shale access, robust existing infrastructure, and a business environment receptive to large-scale energy and technology investment as key factors underpinning the company’s decision to build in Pennsylvania.
U.S. Senator Dave McCormick also weighed in, framing the construction as a tangible expression of Pennsylvania’s energy and workforce strengths — and as infrastructure he argues is essential to both American energy security and the country’s competitiveness in the global AI race.
The project is expected to create jobs across the region while delivering long-term economic benefits to rural communities in Pennsylvania’s northern tier — an area long regarded as the backbone of the state’s energy production history and now being positioned as a foundation for its technological future.
Fact Sheet: UGI-Prime Pennsylvania Natural Gas Pipeline
Natural Gas Pipeline and AI Infrastructure Partnership — Pennsylvania Northern Tier
The Companies
- UGI Energy Services, LLC — Midstream subsidiary of UGI Corporation, King of Prussia, Pennsylvania
- Prime Data Centers, LLC — International hyperscale data center developer, headquartered in Dallas, Texas
- Prime serves cloud providers, AI firms, and global Fortune 500 companies across the U.S. and Europe
The Deal
- UGI Energy Services will sell property to Prime Data Centers under a purchase and sale agreement
- Prime will construct an on-site gas-fueled electric generation facility on the acquired property
- UGI will build dedicated natural gas pipeline and supporting supply infrastructure for the project
- UGI retains approximately 15 billion cubic feet of underground storage capacity
- UGI also retains oil and gas rights associated with the property
The Construction & Investment
- UGI’s planned infrastructure investment exceeds $100 million
- Prime to build one of Pennsylvania’s largest AI and high-performance computing facilities
- On-site generation facility designed for long-duration energy resilience
- Project located in Pennsylvania’s northern tier
Key Figures
- $100M+ — UGI’s planned infrastructure investment
- 100,000+ dekatherms/day — Prime’s projected natural gas demand
- 3–5 years — Timeline to reach full demand capacity
- 15 billion cubic feet — UGI’s retained underground storage capacity
Location & Energy Infrastructure
- Pennsylvania holds the fourth largest natural gas reserves in the world
- Project sits in direct proximity to the Marcellus Shale formation
- Multiple redundant interstate pipeline systems present in the region:
- Eastern Gas Transmission and Storage
- Tennessee Gas Pipeline
- UGI Utilities distribution network
- Redundant supply pathways critical to continuous hyperscale data center operations
Strategic Significance
- Supports America’s energy security and AI competitiveness
- Expected to create jobs across Pennsylvania’s northern tier
- Drives economic growth in rural communities
- Establishes Pennsylvania as a key corridor for next-generation AI infrastructure
