Alpha Compute announced plans to acquire Pennsylvania land and gas rights for an AI data center campus, leveraging natural gas for power generation.

Rising demand for artificial intelligence computing is pushing developers to secure dedicated power sources as grid connections remain constrained across the U.S. Alpha Compute has signed a binding term sheet to acquire land and natural gas rights in Pennsylvania for $55 million to support a 200-megawatt data center campus.

The northern Pennsylvania site is expected to begin operating in the third quarter of 2027 and will include gas-fired power generation. The facility could eventually be expanded to generate one gigawatt of power. The deal includes undeveloped Marcellus gas rights covering approximately 1,800 mineral acres.

The company expects to close the transaction after a 60-day diligence period. Following the initial $55 million investment, the broader build-out of the campus—including electrical connections—is expected to cost approximately $500 million over several years.

The Alpha Compute project combines data center development, natural gas production, and on-site electricity generation. This integrated approach is gaining traction as utilities struggle to connect large AI facilities quickly enough. The project requires local approvals at a time when some communities are imposing stricter restrictions on data centers due to electricity and water consumption concerns. Local communities have been receptive so far, though the exact location remains undisclosed.

If completed, the project would become Alpha Compute's first data center development in the U.S., expanding the company beyond its traditional confidential-computing services aimed at governments, militaries, and private-sector users seeking end-to-end encrypted secure computing.