Alpha Compute has signed a binding term sheet for an exclusive option to acquire energy and development assets in northern Pennsylvania for a proposed natural gas-powered data center campus with an initial capacity of 200 megawatts.
The agreement, announced August 11, 2026, covers approximately 1,800 oil and gas mineral acres with unleased Marcellus gas rights, along with surface and pore-space properties. Alpha Compute would acquire the assets for a base purchase price of $55 million if the transaction moves forward.
The proposed campus could initially support 200 MW of power and data center capacity, with potential expansion to 1 GW.
The project remains in development. The transaction is subject to due diligence, financing, permits, definitive agreements and other closing conditions. No power or data center capacity currently operates at the site.
$55 Million Option Covers Pennsylvania Energy Assets
Alpha Compute Management, LLC, a subsidiary of Alpha Compute, has secured the option under the binding term sheet.
The proposed acquisition includes approximately 1,800 oil and gas mineral acres with unleased Marcellus gas rights, as well as surface and pore-space properties in northern Pennsylvania.
The base purchase price is $55 million. A $3 million deposit would become payable after execution of a definitive Property Purchase Agreement and satisfaction or waiver of specified conditions, with the deposit credited toward the cash balance at closing.
The transaction excludes existing leasehold rights in the Utica and deeper formations.
Natural Gas-Powered Data Center Planned
The proposed development centers on using the property’s Marcellus natural gas resources to support power generation for the data center campus.
A third-party evaluation cited by Alpha Compute estimated that gas produced from the property’s Marcellus Formation could support 200 MW of continuous generation for 10 years.
The evaluation also estimated an all-in delivered electricity cost of approximately $0.0585 per kilowatt-hour. Alpha Compute compared that figure with cited PJM commercial and industrial electricity rates of roughly $0.08 to $0.10 per kilowatt-hour.
Those figures are estimates from the third-party evaluation and depend on the assumptions underlying the analysis.
Alpha Compute is also evaluating a grid connection using nearby transmission infrastructure and substations, subject to applicable agreements and approvals.
200 MW Campus Could Expand to 1 GW
Alpha Compute plans an initial 200 MW of power and data center capacity for the Pennsylvania project.
The company has also identified potential expansion to 1 GW. That larger capacity remains dependent on due diligence, permitting, financing and definitive agreements.
The proposed expansion would give the project a potential fivefold increase from its initial planned capacity if the necessary conditions are met.
For now, however, the site remains a greenfield development with no operating power or data center capacity.
12 Marcellus Wells Planned for Power Supply
The current development concept calls for 12 Marcellus wells with average lateral lengths of approximately 13,000 feet.
The wells would be drilled from two new pads on the southeastern edge of the mineral block.
Existing infrastructure near the property could provide additional options for fuel supply and future capacity expansion. Multiple high-pressure interstate natural gas transmission lines also run near the acreage.
A nearby 115-kilovolt transmission line and substations could provide an option for grid interconnection, although any connection would require the necessary agreements and approvals.
80 Acres Identified for Initial Development
Alpha Compute has identified approximately 80 contiguous acres on a high, flat plateau as suitable for the initial development.
The company says its environmental screening found no threatened or endangered species in state databases. Federal species of concern require further evaluation during permitting.
Three small wetlands were also identified for avoidance or permitted relocation.
The development plan calls for closed-loop cooling that recirculates water rather than withdrawing it. Alpha Compute also plans sound limits, full-cutoff lighting, earth-tone buildings, native plantings and riparian buffers.
These remain proposed project features and are subject to the project’s environmental and permitting process.
Pennsylvania Data Center Requires Multiple Approvals
The planned campus must clear several regulatory and local development steps before construction can proceed.
The project is expected to undergo review under local Data Center Ordinances, including review by the County Planning Commission and approval by the Board of Commissioners.
The development process also includes an environmental and community impact analysis, an environmental impact assessment and a water feasibility study.
Alpha Compute expects to coordinate with emergency services and obtain applicable permits from the Pennsylvania Department of Environmental Protection and the Susquehanna River Basin Commission.
These requirements mean the project remains several steps away from construction.
Project Remains Conditional
The August 11 announcement establishes a binding term sheet for the proposed transaction, but it does not guarantee that Alpha Compute will acquire the property or build the planned data center.
The transaction remains subject to satisfactory due diligence, definitive agreements, title and survey review, financing, government and regulatory approvals and other conditions.
Alpha Compute also states that there is no assurance the transaction will close, reach commercial operation or result in construction of the planned data center.
For now, the key milestone is the agreement giving Alpha Compute an exclusive option over the underlying assets and establishing a potential route toward a 200 MW natural gas-powered data center and power campus.
Natural Gas Power Links to Broader Data Center Buildout
The Pennsylvania project comes as large-scale computing developments increasingly focus on securing dedicated power alongside data center capacity.
A related announcement on August 11 involved Fermi and Hillcore, which signed a framework agreement for a planned 2.6 GW power center at Fermi’s Project Matador campus in Texas.
The projects use different structures. Hillcore would finance, build, own and operate Fermi’s planned power center, while Alpha Compute’s Pennsylvania proposal centers on acquiring mineral, surface and pore-space assets that could support its proposed gas-powered generation.
Both developments nevertheless highlight the importance of dedicated power infrastructure to planned AI and data center campuses.
Next Steps Before Construction
Alpha Compute must complete due diligence and negotiate definitive agreements before the proposed acquisition can close.
The project must also advance through financing, environmental review, local approvals and applicable state and regional permitting.
If those conditions are satisfied, the company plans to develop the initial 200 MW campus and could potentially expand the project toward 1 GW.
For now, the northern Pennsylvania development remains a proposed greenfield data center project rather than an active construction site.
Factsheet: Alpha Compute Pennsylvania Data Center Project
- Project: Planned Pennsylvania data center campus
- Location: Northern Pennsylvania
- Developer: Alpha Compute
- Announcement: August 11, 2026
- Transaction: Binding term sheet for an exclusive acquisition option
- Base purchase price: $55 million
- Deposit: $3 million, subject to specified conditions
- Mineral assets: Approximately 1,800 oil and gas mineral acres
- Initial planned capacity: 200 MW
- Potential expansion: Up to 1 GW
- Power model: Proposed behind-the-meter generation
- Proposed fuel source: Marcellus natural gas
- Planned wells: 12
- Initial development area: Approximately 80 contiguous acres
- Site status: Greenfield; no operating power or data center capacity
- Key approvals: Local, environmental, water, state and regional permits
- Next steps: Due diligence, definitive agreements, financing and permitting
- Construction status: Not yet under construction
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