Alpha Compute Corp has signed a binding term sheet for the right to buy mineral, surface and pore-space assets in northern Pennsylvania, the first step toward a planned artificial intelligence data center campus that would run on gas produced from the same ground. The term sheet gives Alpha Compute Management LLC, a company subsidiary, an exclusive option to buy the assets for a base price of $55 million. A $3 million deposit is due once the parties sign a definitive Property Purchase Agreement and clear a set of specified conditions, and that deposit will count toward the cash due at closing.
Alpha Compute Corp itself will be the offtaker. The company has made a binding but conditional intra-group commitment to take an initial 200 megawatts of power and data center capacity, with room to expand to 1 gigawatt, subject to diligence, permitting, financing and definitive agreements still to come. No power or data center capacity exists on the site today. This is a greenfield project, and Alpha Compute is working with development and financing partners to fund it with non-dilutive capital through special purpose vehicles and joint ventures.
The assets on the table
The option covers unleased Marcellus Shale gas rights across roughly 1,800 oil and gas mineral acres in the deal's included formations, carrying a 100% net revenue interest that is still subject to title confirmation. Existing leasehold rights in the Utica formation and formations deeper than that are excluded from the deal. The package also includes surface and pore-space property in northern Pennsylvania that is held for future development and is not part of the data center campus itself.
Power built on-site
The plan calls for the electricity and the fuel that makes it to come from the same property. A third-party evaluation found that gas from the underlying Marcellus formation could supply 200 MW of continuous generation for ten years at an all-in delivered cost of about $0.0585 per kilowatt-hour, a figure that folds in the capital and operating costs of drilling, gathering and turbine generation. Alpha Compute puts that below prevailing PJM commercial and industrial power rates.
| Metric | Figure |
|---|---|
| Option purchase price | $55 million |
| Deposit at signing | $3 million |
| Mineral acreage under option | ~1,800 acres |
| Initial power capacity | 200 MW |
| Potential expansion | 1 GW |
| Estimated on-site power cost | $0.0585/kWh |
| PJM comparison rate cited | $0.08-$0.10/kWh |
Those cost estimates still need to be validated, and Alpha Compute's own materials note the outcome depends on the underlying assumptions holding up. The development plan calls for twelve Marcellus wells with average lateral lengths of about 13,000 feet, drilled from two new pads on the southeastern edge of the mineral block. Multiple high-pressure interstate gas transmission lines run next to the acreage, which the company says could provide backup fuel supply and room to grow past 1 GW. A 115 kV transmission line and nearby substations are also within reach, offering the option of a grid connection if it is needed.
What site diligence found
Surface diligence turned up a high, flat plateau with about 80 contiguous acres suited to initial construction, on ground made of interbedded siltstones, sandstones and shales with no faults, karst or sinkholes identified. Environmental screening found no threatened or endangered species in state databases, though federal species of concern were flagged for further review during permitting, and three small wetlands were identified for avoidance or permitted relocation. Alpha Compute is also evaluating carbon dioxide sequestration in the deep formations under the site, which would need separate rights and approvals.
Alpha Compute's first two GPU deployments, in Canada and Sweden, run on 100% hydroelectric power. Chief executive Brittany Kaiser said the Pennsylvania project applies that same standard to a different resource base, and described the goal as data campuses that "prioritize community integration" while producing power on-site. Executive chairman and president Enzo Villani framed the on-site generation plan as a way to "transform energy from a primary operational expense into a strategic asset."
Built to local standards, pending approval
The design includes:
- Closed-loop cooling that recirculates water instead of withdrawing it
- Noise held to a 57 dBA standard at neighboring property lines
- Full-cutoff lighting and low-reflective, earth-tone buildings with barn-style exteriors, set behind berms and native plantings
- Riparian buffers along every stream
- A funded decommissioning plan from the first day of operation
Before construction, the project needs:
- Review by the County Planning Commission and approval from the Board of Commissioners
- An environmental and community impact analysis and a separate environmental impact assessment
- A water feasibility study and coordination with the county's 911 Coordinator and Department of Emergency Services
- Permits from the Pennsylvania Department of Environmental Protection and the Susquehanna River Basin Commission
Alpha Compute said it plans to engage local officials and residents as the project moves through that review.
The county's Chief Assessor has estimated that a data center project of this scale could add about $2.08 billion to the county's taxable assessed value, a roughly 54% increase over the current total, with an estimated combined annual tax impact of $33.4 million split across the county, its municipalities and the school district. Actual assessment and tax figures will depend on the project's final configuration and are set by county procedures, not by Alpha Compute.
