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Prime Data Centers / UGI Northern Tier

Northern Tier (site not disclosed)

UGI Energy Services plans to sell land in Pennsylvania's northern tier to Prime Data Centers for an on-site, gas-fueled power plant and data center campus, and neither company has said where it is.

ContestedGreenfield GasUnknownN Central
At a glance

The project by the numbers

StatusProposed
First announced2026-05-06
Target online2026

A gas-powered data center campus on UGI land in the northern tier, with the site still secret

The number that mattersThe companies say Prime's natural gas demand is expected to exceed 100,000 dekatherms per day within three to five years, but they still haven't said which county the campus is in.
Developer
Prime Data Centers, led by CEO Nicholas Laag, is the developer. UGI Energy Services, a subsidiary of UGI Corporation led by president Joseph Hartz, is selling the property and plans to build the gas pipeline and supply facilities, an investment UGI says could exceed $100 million. UGI keeps about 15 billion cubic feet of underground gas storage capacity and the oil and gas rights tied to the property.
Tenant
No end user has been named. The companies describe the site as supporting future hyperscale data center operations for AI and high-performance computing.
Current stage
Announced on May 6, 2026 as a purchase and sale agreement. As of October 22, 2026, no location, municipal application or state permit filing tied to the project has been made public, and UGI gave no update in its August 6 quarterly results.
Decision body
Not yet known. The site hasn't been disclosed, so the township or county that would handle zoning and land development review can't be identified yet.
Top issues
Secrecy about the location and the end user, emissions from a large on-site gas-fired power plant, construction of a new gas pipeline, and whether rural northern tier townships have zoning rules ready for a project of this size.
Key opponents
No organized opposition group has been reported. Former state Department of Environmental Protection Secretary David Hess told WPSU that little is known about the project and urged UGI and the developer to be "very transparent and upfront with the communities" about their plans.
Key supporters
U.S. Senator Dave McCormick endorsed the project in the announcement, saying this kind of infrastructure is necessary for energy security and will create good jobs. UGI Energy Services president Joseph Hartz and Prime CEO Nicholas Laag spoke for the project in the announcement.

How we got here

UGI Energy Services and Prime Data Centers announced a purchase and sale agreement on May 6, 2026, under which UGI sells Prime property for an on-site, gas-fueled electric generation facility and Prime builds a data center campus. UGI keeps about 15 billion cubic feet of underground storage capacity and the associated oil and gas rights, and plans more than $100 million in pipeline and supply infrastructure. U.S. Senator Dave McCormick endorsed the deal. UGI described the partnership in its May 7 SEC filing and earnings call, where CEO Bob Flexon said more than 75 nondisclosure agreements tied to possible projects had been signed. On May 20 a UGI spokesman told WPSU he couldn't provide the location or timeline. UGI's August 6 third quarter results and call didn't add details.

What is at stake

Impacts raised and open questions

Air quality

High

The campus would run on an on-site gas-fueled power plant. The companies say Prime's natural gas demand is expected to exceed 100,000 dekatherms per day within three to five years. Burning that much gas on site would create a significant new source of air emissions, and no air permit application has been made public.

UGI Corporation

Public safety

Medium

UGI plans a new pipeline and associated facilities to deliver gas to the site, part of a midstream investment it says could exceed $100 million. The route and length haven't been disclosed.

Pipeline & Gas Journal
Timeline

How it has unfolded

  • 2026-05-06UGI Energy Services and Prime Data Centers announce a purchase and sale agreement for a gas-powered data center campus site in Pennsylvania's northern tier. UGI Corporation
  • 2026-05-07UGI's second quarter results, filed with the SEC, describe the Prime partnership and expected gas demand above 100,000 dekatherms per day within three to five years. U.S. Securities and Exchange Commission (EDGAR)
  • 2026-05-07On UGI's earnings call, CEO Bob Flexon says Prime is one of many data center opportunities and more than 75 nondisclosure agreements tied to possible projects have been signed. MarketBeat
  • 2026-05-20A UGI spokesman tells WPSU he can't provide the project's location or timeline. WPSU
  • 2026-08-06UGI's third quarter results and earnings call give no new details on the Prime site. U.S. Securities and Exchange Commission (EDGAR)
News

Coverage of this project

Sources

Know your rights

In Pennsylvania, the local zoning ordinance sets the route. A conditional use is decided by the elected governing body (supervisors, commissioners or council). A special exception or variance, and an appeal of a zoning officer’s decision, go to the Zoning Hearing Board. Each is a public hearing on a record: affected neighbors can ask for party status, cross-examine witnesses, and appeal. Municipalities can also adopt data center ordinances with enforceable standards.

Know your rights →

Take action

Organized community opposition is the single most effective check on these projects in Pennsylvania. Show up to hearings, submit comment when it is taken, support legal and expert-witness costs, and press your municipality for a real ordinance. Pennsylvania municipalities cannot simply freeze applications, but a curative amendment under the Planning Code gives them a defined window to fix a defective ordinance.

How communities push back →