Exclusive-Alpha Compute to buy Pennsylvania land, gas rights for $55 million data center campus, company says

Alpha Compute, an AI infrastructure company, has agreed to purchase land and natural gas rights in Pennsylvania for $55 million to construct a 200-megawatt data center campus, according to CEO Brittany Kaiser. The demand for AI computing is driving a competition for power supplies nationwide, leading data centers to secure their own energy sources instead of relying on the grid.

Pennsylvania, with its natural gas resources from the Marcellus shale basin, existing power infrastructure, and close proximity to major East Coast cities, has become a prime location for new data centers. Amazon recently announced a $20 billion investment in the state. The northern Pennsylvania site, which includes gas-fired power generation, is expected to commence operations in the third quarter of 2027, potentially expanding to generate one gigawatt of power.

The project combines data center development with natural gas production and on-site electricity generation, a strategy that increasingly appeals to utilities facing challenges in connecting large AI facilities to the grid. The deal includes undeveloped Marcellus gas rights covering approximately 1,800 mineral acres and offers the British Virgin Islands-incorporated company an exclusive option to acquire the assets.

The transaction is contingent upon due diligence, financing, permitting, and final agreements. Kaiser anticipates closing the deal within a 60-day diligence period. The project requires local approvals, which have so far been welcomed by communities, despite some tightening restrictions due to data centers' high electricity and water demands.

Alpha Compute, while traditionally offering confidential computing services, is relatively new to data center development. The Pennsylvania project, if realized, would mark the company's first data center development in the United States. After the initial investment, Kaiser expects the build-out of the data center campus, including electrical connections, to cost around $500 million over several years.

Potential users are showing interest in secure computing services that employ end-to-end encryption, which is increasingly sought after by governments, militaries, and private-sector organizations looking to safeguard sensitive data.