en.Wedoany.com Reported - On August 11, artificial intelligence infrastructure company Alpha Compute signed a term sheet to acquire mineral rights, surface rights, and pore space assets in northern Pennsylvania for a base purchase price of $55 million. The company's subsidiary, Alpha Compute Management, thereby obtained an exclusive option to acquire the relevant assets, with plans to develop a data center campus with an initial capacity of 200 megawatts, with long-term expansion potential of up to 1 gigawatt.
The proposed acquisition includes approximately 1,800 acres of unleased Marcellus shale oil and gas mineral rights. The associated interests correspond to a 100% net revenue interest, subject to title confirmation; existing leasehold interests in the Utica formation and deeper formations are excluded from the transaction. The project is a greenfield development, with no currently operating or available power generation or data center capacity at the site; the 200 megawatts are all planned capacity.
The campus plan integrates natural gas extraction, on-site power generation, and data center operations into a single development scheme, with power supplied through behind-the-meter gas-fired power generation systems. Third-party assessments indicate that natural gas from the Marcellus formation at the site can support 200 megawatts of generation for 10 consecutive years, with an estimated all-in power cost of $0.0585 per kilowatt-hour for drilling, gathering, and simple-cycle gas turbine power generation; the relevant data still requires further verification.
The development plan includes drilling 12 Marcellus shale gas wells from two new well pads, with an average lateral length of approximately 13,000 feet. The site is adjacent to multiple high-pressure interstate natural gas pipelines, and a 115-kilovolt transmission line and substation are also located nearby, allowing grid interconnection subject to commercial arrangements, interconnection rights, and regulatory approvals. Surface surveys have identified approximately 80 acres of contiguous land available for the project's initial phase.
The term sheet is binding only with respect to the exclusive option and specific obligations; the acquisition transaction remains subject to the completion of due diligence, title and survey review, financing arrangements, negotiation of definitive agreements, and governmental and regulatory approvals. The company, as the offtaker for the campus's power and data center capacity, has made a conditional intercompany offtake commitment. A $3 million deposit will be paid upon the execution of the definitive asset purchase agreement and satisfaction of related conditions, and will be credited against the cash purchase price at closing.
The project is also subject to review by the local planning commission and approval by the county commission, as well as the completion of environmental and community impact analyses, an environmental impact assessment, and a water availability study. Permits from agencies such as the Pennsylvania Department of Environmental Protection and the Susquehanna River Basin Commission are also conditions for subsequent development.
Alpha Compute plans to introduce non-dilutive capital through special purpose vehicles and joint ventures. The company's chief executive officer expects the transaction to close after the approximately 60-day due diligence period concludes; the project targets commencement of operations in the third quarter of 2027. In addition to the $55 million asset purchase price, subsequent construction costs for the campus and electrical interconnection are estimated at approximately $500 million, to be invested in phases over several years.
