Getting power fast enough to run artificial intelligence workloads has pushed one infrastructure company to buy its own gas field. Alpha Compute signed a binding term sheet, a preliminary agreement that commits both sides to deal terms before final contracts are executed, to acquire land and natural gas rights in northern Pennsylvania for $55 million. The plan is a 200-megawatt data center campus that would generate its own electricity on site, with operations targeted to begin in the third quarter of 2027.
On-site power and what it solves
Utilities across the United States cannot connect large AI facilities to the grid quickly enough to meet demand. That pressure has pushed developers to own the fuel source and build their own generators rather than wait for a utility connection.
Alpha Compute's Pennsylvania site would combine data center operations with on-site natural gas generation. The deal covers about 1,800 mineral acres of undeveloped Marcellus gas rights. The Marcellus shale basin sits beneath much of Pennsylvania and is the source of the natural gas abundance that has drawn data center investment to the state. CEO Brittany Kaiser told Reuters the facility could eventually be expanded to generate one gigawatt of power.
Why this deal is not finished
A binding term sheet is not a closed transaction. The agreement gives Alpha Compute an exclusive option to acquire the assets, and the deal remains subject to due diligence, financing, permitting, and execution of final contracts. Kaiser said she expects the 60-day diligence period to lead to a close.
Local approvals add another layer. Some communities have tightened restrictions on data centers because of their electricity and water demands. Kaiser said local reception has so far been positive, but the exact site location has not been disclosed.
What the build actually costs
The $55 million covers land and gas rights. The full build-out of the campus, including electrical connections, is expected to run about $500 million spread over multiple years, Kaiser said.
Alpha Compute has historically provided confidential-computing services, a category that emphasizes end-to-end encryption for governments, militaries, and private-sector clients handling sensitive data. The Pennsylvania project would be the company's first data center development in the United States. The company is incorporated in the British Virgin Islands.
Pennsylvania has become competitive ground for data center siting. Amazon announced $20 billion in planned investment in the state last year, drawn by the same mix of natural gas supply and proximity to East Coast population centers.