UGI Energy Services and Prime Data Centers Forge Strategic Partnership to Power Data Center Campus
UGI Energy Services and Prime Data Centers Forge Strategic Partnership to Power Data Center Campus
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Key Terms
dekathermstechnical
A dekatherm is a standard unit of energy equal to ten therms, or about one million British thermal units (BTUs), commonly used to measure natural gas volume and trade. For investors it matters because gas prices, revenues and contract sizes are often quoted per dekatherm, so changes in price or volume expressed in dekatherms directly affect a company’s sales, costs and the value of commodity positions—think of it as buying energy in ten‑unit bundles.
midstreamtechnical
Midstream refers to the phase in the energy supply chain that involves the transportation, storage, and processing of oil and natural gas after extraction from the ground, but before they are refined into usable products. For investors, midstream companies are important because they often generate steady income through fees for moving and storing energy resources, making them a key link between resource producers and consumers.
marcellus shaletechnical
A large underground rock formation in the U.S. Northeast that holds vast amounts of natural gas trapped inside dense shale; companies extract that gas by drilling and fracturing the rock. It matters to investors because production from this formation can shift regional supply, affect natural gas prices, drive demand for pipelines and processing facilities, and influence the revenues and costs of energy companies—think of it as a giant subterranean sponge holding fuel for the market.
hyperscale data centerstechnical
Hyperscale data centers are enormous facilities that house thousands of computer servers to store and process vast amounts of digital information. They operate at a massive scale to support cloud computing, streaming services, and online platforms, making them crucial for handling the growing digital demands of businesses and consumers. For investors, these centers represent key infrastructure that enables digital innovation and often drive significant technological growth.
interstate pipeline systemstechnical
An interstate pipeline system is a network of large pipes and related equipment that moves oil, natural gas, or refined fuel products across state lines, like a highway that carries energy instead of cars. Investors care because these systems generate steady fees or sales, face federal rules and long-term contracts, and can create or relieve supply bottlenecks that affect commodity prices and the cash flow of companies that own or use them.
UGI to Build Dedicated Natural Gas Pipeline and Infrastructure; Prime Data Centers to Develop One of Pennsylvania’s Largest AI and High-Performance Computing Facilities
VALLEY FORGE, Pa. & DALLAS--(BUSINESS WIRE)--
UGI Corporation (NYSE: UGI), through its subsidiary UGI Energy Services, LLC (UGIES), and Prime Data Centers, LLC (Prime), a leading international developer and owner of hyperscale data centers, today announced a strategic partnership to develop major natural gas supply infrastructure in Pennsylvania’s northern tier, in support of one of the state’s most significant energy and technology investments.
Under a purchase and sale agreement, UGI Energy Services will sell Prime property to build a proposed on-site gas-fueled electric generation facility. UGI will retain approximately 15 billion cubic feet of underground storage capacity and oil and gas rights associated with the property. The project is expected to support on-site energy resilience and long-duration capacity for future data center operations.
Prime’s natural gas demand is expected to exceed 100,000 dekatherms per day within three to five years - a scale that underscores the importance of the project for the region’s energy infrastructure.
"This is a significant milestone for UGI Energy Services and a strong fit for our midstream capabilities, where we anticipate that our planned investment could be in excess of $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," said Joseph Hartz, President, UGI Energy Services.
"Prime Data Centers is thrilled to partner with UGI Energy Services. 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," said Nicholas Laag, Chief Executive Officer, Prime Data Centers.
“Pennsylvania has the fourth largest natural gas reserves in the world, and this partnership puts that resource to work where it matters most – securing America’s energy future and leading the global AI race. This kind of infrastructure is necessary for our energy security, will create good jobs, and drive real economic growth for rural communities that have always been the foundation of Pennsylvania’s energy strength. Pennsylvania has the energy, the skilled workers, and the will to lead. This project proves it,” said U.S. Senator Dave McCormick.
The northern tier of Pennsylvania is rich with natural gas, providing a significant, built-in energy resilience advantage and long-duration supply security that few data center developments can match. Additionally, major interstate pipeline systems, including Eastern Gas Transmission and Storage and Tennessee Gas Pipeline, as well as the UGI Utilities distribution network, maintain a presence - offering multiple, redundant supply pathways critical to meeting the continuous and growing energy demands of hyperscale data center operations.
About Prime Data Centers
Prime Data Centers is a leading international developer and owner of hyperscale and purpose-built data centers, designed to power the future of artificial intelligence, high-performance computing, and digital transformation. Established in California in 2017, Prime operates 13 campuses comprising 28 data centers, with four gigawatts of operational and planned capacity across premier markets in the United States and Europe, including Chicago, Dallas, Los Angeles, Phoenix, Silicon Valley, Austin, Frankfurt, Berlin, Madrid, and the Nordics.
About UGI Energy Services
UGI Energy Services, LLC, a subsidiary of UGI Corporation, markets natural gas, electricity, and liquid fuels to commercial, institutional, and industrial customers. UGI Energy Services owns and operates a broad portfolio of natural gas midstream assets, including liquefied natural gas storage and vaporization facilities, underground storage fields, gathering systems, intrastate and interstate pipelines, compressor stations, and renewable natural gas digesters. For more information, visit www.ugies.com
About UGI Corporation
UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services across the United States and Europe. Through its subsidiaries, UGI provides natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation and marketing, and energy marketing services. For more information, visit www.ugicorp.com
