Essential Utilities backs $26m data center project in Pennsylvania
Subscribe to our free newsletter today to keep up to date with the latest energy, oil and gas news.
Essential Utilities is investing $26 million in a major data center development in Greene County, Pennsylvania. The project, led by International Electric Power III (IEP), will be powered by a 944-megawatt behind-the-meter natural gas and battery storage system. Essential Utilities’ subsidiaries, Aqua and Peoples, will provide the water and natural gas services needed to run the facility, showing how utilities are taking a larger role in digital infrastructure. Scheduled to begin operations in early 2029, the project highlights how integrated utility support is shaping the next generation of hyperscale and AI-ready data centers.
The scale and structure of the Greene County project
The facility will span about 1,400 acres in Greene County. Its power system is designed for resilience, with 944MW of combined-cycle natural gas turbines supported by battery storage to ensure continuous operations. A grid connection will serve as backup, offering the redundancy needed for hyperscale computing.
Key milestones include turbine manufacturing slots already secured, with deliveries expected in 2028. Developers anticipate the site will be fully operational in the first quarter of 2029. For Greene County, long associated with coal and traditional industries, the development of a nearly gigawatt-scale computing hub signals a shift toward digital infrastructure.
Utility expertise shaping a new data center model
Essential Utilities is applying its water and gas capabilities to this project. Aqua will design, build, and operate an 18 million gallons per day water treatment plant that will draw from the Monongahela River to serve both cooling and power generation. Peoples, the company’s natural gas subsidiary, will provide consulting and energy management services.
This approach demonstrates how utilities are evolving beyond their traditional roles. By aligning water systems, fuel supply, and technical expertise with large-scale computing needs, Essential Utilities is positioning itself as more than a service provider. It is becoming a development partner in one of the fastest-growing segments of the economy.
Behind-the-meter energy and data center resilience
Behind-the-meter generation gives operators more control over power costs and reliability. For data centers, this reduces exposure to grid congestion and energy price fluctuations, while providing greater flexibility in how power is produced and consumed.
In Greene County, the mix of natural gas turbines with battery storage illustrates how the model can support reliability while integrating newer technologies. Industry-wide, similar strategies are gaining ground as hyperscale developers seek dependable power sources to meet the growing demands of AI workloads.
Regional and industry implications
Greene County offers the land, water resources, and fiber connectivity required for a project of this size. Its location and infrastructure make it an attractive choice for hosting a facility of this scale.
Essential Utilities has already engaged with developers planning more than 5 gigawatts of new demand across its service area, showing that this project may be a first step in a larger expansion. The facility has the potential to draw further investment into western Pennsylvania, supporting regional growth while advancing the state’s role in digital infrastructure.
Future outlook for AI infrastructure and utility partnerships
The Greene County development reflects how utilities can anchor the expansion of AI-ready data centers. By embedding water treatment and natural gas services into the project design, Essential Utilities is illustrating the value of utility partnerships in enabling large-scale computing.
Sustainability will remain an ongoing consideration. Water use must be managed carefully, and natural gas emissions will be closely monitored. Balancing the demand for digital growth with environmental concerns will be central to the project’s long-term acceptance.
Even with these challenges, the project underscores how Pennsylvania is emerging as a key location in the race to expand AI infrastructure. With operations planned for 2029, Greene County is on course to become a focal point for utility-supported, hyperscale data center development.
Sources: