UGI Energy Services and Prime Data Centers have signed a natural gas supply infrastructure deal in northern Pennsylvania to support data center operations in the state.

Under the terms of the deal, UGI will sell Prime a parcel of land for an on-site gas-fueled power generation facility. The property will have access to roughly 15 billion cubic feet of underground storage capacity and associated oil and gas rights.

According to the companies, the project will lean heavily on the region's existing energy infrastructure. Pennsylvania's northern tier sits atop Marcellus Shale reserves and is close to major interstate pipeline systems, including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline, alongside UGI Utilities' own distribution network.

UGI Energy Services president Joseph Hartz said the company's planned investment could exceed $100 million.

"We're proud to partner with Prime Data Centers, and as energy demands continue to grow, the northern tier's direct access to locally produced natural gas and multiple interstate pipeline systems makes this a well-positioned project. We look forward to helping power what will be a landmark investment for Pennsylvania," he said.

Prime CEO Nicholas Laag pointed to the region's geology and policy environment as key draws. "Pennsylvania's northern tier offers a rare combination of direct Marcellus Shale access, robust pipeline infrastructure, and a business environment that welcomes large-scale energy and technology investment — and UGIES brings the midstream expertise and operational scale to match our ambitions. Together, we are building the energy backbone that will power the next generation of AI and high-performance computing in Pennsylvania," Hartz added.

Financial terms beyond UGI's expected investment figure were not disclosed.

Prime currently operates 13 campuses spanning 28 data centers, with 4GW of operational and planned capacity across markets including Chicago, Dallas, Silicon Valley, Frankfurt, and the Nordics. The company’s most recent announcement occurred in March, when it revealed plans for a new data center campus in Esbjerg, Denmark, in partnership with Brunswick Real Estate.

UGI Energy Services is a subsidiary of UGI Corporation, a NYSE-listed energy company headquartered in Pennsylvania. The company's core business is midstream natural gas infrastructure.