Proof That Data Centers Don’t Raise Residential Electric Rates
We’re facing a full-blown crisis in building new AI data centers — at least in Pennsylvania (and in many other states). How do we know? Read this story published by the Wall Street Journal yesterday: The American Rebellion Against AI Is Gaining Steam. We also know because of our own private conversations with friends who live in Pennsylvania—very conservative, Republicans—who are deadset against data center projects. Their perception, right or wrong, is that big companies are forcing these projects on rural or disadvantaged communities that can’t fight back and that contain all the negatives, like noise and water use, with no positives. Our friends maintain that these data centers will use power from the local grid, driving up costs for everyone (particularly residences). That last argument is simply not true. Demonstrably not true. But the perception that data centers cause high electricity prices (as wrong as it is) persists. Read More “Proof That Data Centers Don’t Raise Residential Electric Rates”
Yesterday was the day. The third AI Energy Conference (which sold out) was held at the Hilton Garden Inn Pittsburgh/Southpointe in Canonsburg, PA. One of the speakers, Travis Wright, Vice President of Energy and Sustainability for QTS, said that everyday smartphone use depends on data centers. They are essential infrastructure for modern life. Blackstone-owned QTS, which operates major facilities nationwide and is planning a 1,700-acre data center campus in Luzerne County (Wilkes-Barre area), sees Appalachia as a promising market due to its workforce, energy resources, and suitability for AI-focused facilities. 
Last November, the Pennsylvania Public Utility Commission (PUC) approved a Tentative Order by a 3-2 vote, proposing a statewide model tariff (tax) to manage the growing impact of large-load customers, such as AI data centers, on the electric grid (see 
UGI Corporation’s UGI Energy Services and Prime Data Centers yesterday announced a strategic partnership to develop natural gas supply infrastructure in Pennsylvania’s northern tier for a proposed gas-fired power facility serving future hyperscale data center operations. Under the deal, UGIES will sell Prime some of its property while retaining about 15 billion cubic feet (Bcf) of underground storage capacity and related oil and gas rights. Prime’s gas demand is expected to exceed 100,000 dekatherms per day (100 MMcf/d) within three to five years. A major new customer for PA Marcellus gas! 
Three weeks ago, the Trump Department of Energy announced it is moving forward with funding for five of the original seven Biden-awarded hydrogen hub projects, spending $5 billion of the originally allotted $7 billion (see 
We had to do a double-take when we spotted an editorial, written by the editors of the liberal Bloomberg News service, running under the title, “Data Centers Aren’t the Enemy — They’re the Future.” Bloomberg’s editorial board argues that proposed restrictions or moratoriums on data centers would be a major mistake, given their growing importance to cloud computing, AI, and the broader economy. Do you like using Facebook? Do you search Google? Do you have an Amazon Alexa in your home that you use with voice commands? Do you talk to your cell phone with voice commands? That all comes from data centers (some of it AI). If you block data centers, you block the internet. It’s that simple. 
Data centers are driving significant growth in natural gas demand in the Midwest, leading to several pipeline expansion projects. East Daley Analytics is tracking 24 GW of potential power generation capacity from Midwest data centers, which could create over 5 Bcf/d of new gas demand in a high-case scenario. The region’s appeal stems from ample land, water resources, and low-cost electricity, with Illinois and Wisconsin showing the largest potential growth (if the Democrat machine in those states doesn’t block it). To meet this demand, over 3.2 Bcf/d of pipeline expansions are planned for six different pipelines. While some of the pipelines flow molecules from other regions, they ALL flow at least some Marcellus/Utica molecules. We have the list of pipelines looking to expand below. 
EQT Corporation delivered its latest quarterly update yesterday for the first quarter of 2026. EQT sees the materialization of “in-basin demand growth” improving Appalachian market conditions through the end of the decade. The company says it is positioned as a preferred partner for large-scale power, midstream, and data center projects in the region. EQT plans to continue drilling and completing a significant number of wells throughout 2026, indicating ongoing development in the Marcellus and Utica regions. However, the company is curtailing (restricting) 10-15 Bcf (billion cubic feet) of production during the second quarter due to current low prices. 
Last July, President Trump and Pennsylvania U.S. Senator Dave McCormick attended a meeting in Pittsburgh to announce an amazing $92 billion of private (no taxpayer funding) investment in the Keystone State, mainly in the data center sector (see 
AI data centers are in the news every single day. We don’t think it’s melodramatic to say that AI is changing the world right now. We also believe it’s accurate to say that everyone (yes, you reading this) will use AI at some level (if you don’t already) within the next year or two. AI, or artificial intelligence, requires, in the aggregate, millions of computers. All of those computers need a place to live (i.e., data centers). And those data centers need electricity to run. Tapping into the local electric grid is not a good option because it takes the grid years to plan, build, and add new sources of power. “Hyperscalers” (massive cloud service providers like Amazon’s AWS, Microsoft’s Azure, or Google’s Cloud, offering scalable, on-demand computing, storage, and networking resources) need to build data centers to house the computers that power AI today. Not years from now. This is a conundrum. A Pittsburgh battery company has partnered with a Houston, Texas, turbine maker to provide a natural gas-based solution ready in months, not years. 
MDN first tipped you back in July 2025 that the Democrat anti-fracking movement in Pennsylvania (and beyond) was rapidly becoming anti-data center (see