Key facts
- Alpha Compute will acquire land and natural gas rights in Pennsylvania for $55 million.
- The planned development is a 200-megawatt data center campus.
- The site includes approximately 1,800 mineral acres of undeveloped Marcellus gas rights.
- The data center is projected to start operations in the third quarter of 2027.
- The project integrates data center development with natural gas production and on-site power generation.
AI infrastructure company Alpha Compute has entered into a binding term sheet to acquire land and natural gas rights in Pennsylvania for $55 million, with plans to develop a 200-megawatt data center campus. CEO Brittany Kaiser stated that the surging demand for artificial intelligence computing is driving data center developers to secure their own energy sources.
Pennsylvania, with its abundant natural gas from the Marcellus shale basin and proximity to major East Coast population centers, has become a prime location for data centers. Alpha Compute anticipates the northern Pennsylvania site, which will feature gas-fired power generation, to become operational in the third quarter of 2027. The facility has the potential for future expansion to one gigawatt of power.
This project represents an increasingly popular approach combining data center development with natural gas production and on-site electricity generation, addressing challenges utilities face in connecting large AI facilities to the grid. The deal includes undeveloped Marcellus gas rights covering approximately 1,800 mineral acres. The agreement grants the British Virgin Islands-incorporated company an exclusive option, contingent on due diligence, financing, permitting, and final agreements, with a closing expected after a 60-day diligence period.
While Alpha Compute has historically focused on confidential-computing services, this marks its entry into data center development. The company expects the campus build-out, including electrical connections, to require an additional $500 million spread over several years. Potential users are interested in the secure computing services offered, which utilize end-to-end encryption and are sought by governments, militaries, and private sector organizations for sensitive data protection.