UGI Corporation (NYSE: UGI) announced a strategic partnership between its subsidiary UGI Energy Services and Prime Data Centers to develop natural gas infrastructure in northern Pennsylvania for a data center campus.

Under the agreement, UGI Energy Services will sell Prime property to build a gas-fueled electric generation facility. UGI will retain approximately 15 billion cubic feet of underground storage capacity and oil and gas rights associated with the property.

Prime's natural gas demand is projected to exceed 100,000 dekatherms per day within three to five years. UGI plans to invest more than $100 million in the project, according to Joseph Hartz, President of UGI Energy Services.

"This is a significant milestone for UGI Energy Services and a strong fit for our midstream capabilities," Hartz said in the announcement.

Prime Data Centers, established in 2017, operates 13 campuses comprising 28 data centers with four gigawatts of operational and planned capacity across the United States and Europe. The company develops hyperscale data centers for artificial intelligence and high-performance computing applications.

The project will utilize Pennsylvania's natural gas resources and existing pipeline infrastructure, including Eastern Gas Transmission and Storage, Tennessee Gas Pipeline, and the UGI Utilities distribution network.

UGI Corporation distributes and markets energy products and services across the United States and Europe through its subsidiaries, providing natural gas transmission and distribution, electric generation, midstream services, and propane distribution.