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Alpha Compute Signs $55 Million Option for Pennsylvania Land and Marcellus Gas Rights

The exclusive term sheet would let the company use on-site gas, behind-the-meter generation to power a planned 200 MW AI data center, with expansion to 1 GW tied to permits and financing.

Overview

  • Alpha Compute disclosed a binding term sheet on Tuesday that gives it an exclusive option to buy surface land and roughly 1,800 Marcellus mineral acres for $55 million subject to a 60-day due-diligence period.
  • The company plans on-site gas-fired generation and behind-the-meter power to run an initial 200 MW AI-focused data center, and it projects commercial operations could begin in the third quarter of 2027 if approvals and financing are secured.
  • Alpha Compute says the site could be scaled to as much as 1 gigawatt of generation and data-center capacity, but any expansion depends on financing, local and state permits, and grid interconnection agreements.
  • After the $55 million option payment, Alpha Compute estimates roughly $500 million more will be needed over several years to build the campus and electrical connections, and the deal follows recent GPU off-take commercial activity that supports demand for its services.
  • The move reflects a wider industry trend in Pennsylvania of pairing Marcellus gas with on-site generation to avoid slow grid hookups for power-hungry AI facilities, though county approvals, environmental reviews and water concerns remain common hurdles.