Houston Co. Creates CNG Virtual Pipeline for AI Data Center
Hardly a day goes by without a story about AI data centers here on MDN. Why? Data centers use electricity either from the local grid or generate it themselves on-site. Either way, the electricity almost always comes from gas-fired power plants. Increasingly, the data centers themselves are opting to host their own gas-fired power plants on-site. Whether the power is coming from the grid or on-site, M-U molecules power it. But there’s a problem for data centers with on-site gas needs: Either there isn’t a pipeline (yet) to the site, or if there is a pipeline, it’s not big enough to flow the gas required. A company in Houston, Texas, has developed a brilliant solution for data centers that require gas and are ready to build now… Read More “Houston Co. Creates CNG Virtual Pipeline for AI Data Center”
New life is being breathed into old, shuttered coal-fired power plants. That’s the focus of an article appearing on the Fortune magazine website. The poster child for converting old coal-fired plants is none other than the former Homer City Generating Station in Indiana County, PA. It will be transformed into a more than 3,200-acre natural gas-powered data center campus, designed to meet the growing demand for artificial intelligence (AI) and high-performance computing (HPC). The new gas-fired plant in Homer City will be THE LARGEST gas-fired power plant in the country, capable of producing up to 4.5 gigawatts (4,500 MW) of electricity (see 
Over the past year, gas utilities have increasingly targeted data centers as customers for on-site power generation, driven by rising demand from hyperscale, leased, and crypto-mining facilities, particularly in Ohio, Pennsylvania, and Texas. Companies, including Atmos Energy, Chesapeake Utilities, National Fuel Gas, and Enbridge, have signed agreements to supply gas or build pipelines to co-located gas-fired or converted coal-to-gas plants. Utilities view medium-sized data centers as a “sweet spot,” but face hurdles such as limited pipeline capacity, equipment backlogs, and coordination challenges across the gas value chain. Smaller turbines and fuel cells are increasingly used, though supply constraints remain a concern. 
Data center projects are sprouting like dandelions in Pennsylvania. Along with these data centers come work and business opportunities for the oil and gas industry and related industries, such as utilities. Here’s an example. Essential Utilities yesterday announced its subsidiaries will invest $26 million in a major data center project in Greene County, PA. Essential is one of the largest publicly traded water, wastewater, and natural gas providers in the U.S., serving approximately 5 million people across 9 states under the Aqua and Peoples brands. Both brands are involved in this announcement. 
It’s hard to believe we’re still talking about (and waiting for) the Pennsylvania Supreme Court to weigh in on whether or not it was legal for former Governor Tom Wolf to unilaterally sentence all Pennsylvanians to the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme—with no vote by the legislature. The Supremes collected briefs on RGGI a whole year ago (see 
A Reuters reporter/commentator published an article that chronicles (with lots of facts, statistics, and charts) the coming rapid buildout of both gas-fired power generation and LNG exports in the U.S. He pitches the situation as a coming “clash of the Titans” (our words, but his sentiment). The author believes that the buildout of new gas-fired plants will sop up molecules that would have gone to LNG export plants, setting up a price war for those molecules. (One could only hope!) We have a different perspective. 
This post is not directly about the Marcellus/Utica, but the issue we discuss is important and significantly affects the M-U. Andrew Dehoff, the Executive Director of the Susquehanna River Basin Commission (SRBC), is sounding the alarm about potential water usage for hyperscale data centers that will be located in the SRBC’s jurisdiction. Dehoff spoke at a Pennsylvania State Senate hearing on Monday. These giant data centers are BIG users of energy and, potentially, big users of water. The water is used not only to cool gas-fired power plants that generate energy for the data centers, but the data centers themselves use water to help cool the thousands upon thousands of computers located in them. 
Competitive Power Ventures’ 680-megawatt CPV Valley Energy Center in Wawayanda, NY, fired up and began producing enough electricity to power 600,000 liberal NY homes in October 2018 (see 
This is too funny. Antis are up in arms over a bitcoin operation on the edge of Seneca Lake in Upstate New York that refuses to shut down. Even though they demand it. Bitcoin miner Greenidge Generation uses a clean-burning (very small) natural gas power plant to power its 15,300 computer servers at a facility on Seneca Lake in Yates County. The nutters on the enviro-left began carping and complaining about this plant back in 2021 (see 
According to an article on the Fortune magazine website, “AI’s endless thirst for power is driving a natural gas boom in Appalachia—and industry stocks are booming along with it.” It looks like the roles are reversing. For all of oil and gas history, oil has been the belle of the ball, the more sought-after hydrocarbon. A change is happening, at least in places like the Marcellus/Utica, where natural gas is the more sought-after commodity. And because of that, the stock price for companies that focus on gas drilling is soaring. The market capitalization (stock value times the number of outstanding shares) for M-U companies has soared 25% to 75% over the past 12 months. Wow! 
PJM Interconnection is the electrical grid operator covering Pennsylvania, along with all or parts of 12 other states and the District of Columbia. For months, the Democrat governors of PJM states have been hammering PJM, blaming PJM for higher electricity prices, even though it is their own policies that are driving electricity prices higher (see