AI-fueled natural gas gold rush bubbling in northcentral Pa.
Williamsport, Pa. — In 2005, the first Marcellus wells began spitting up gas. Twenty years and about 12,000 Pennsylvanian wells later, industry leaders are strategizing how to use that same gas to power artificial intelligence data centers.
The Marcellus Shale Coalition (MSC) currently presides over about 95% of the state’s natural gas. Taking into account that Pa. is the second largest energy-producing state — contributing one-fifth of all produced American natural gas — it’s easy to see that MSC remains an energy titan.
And as Pa. lags drastically behind in establishing renewable energy sources, new hunger for energy is likely to be sated the tried-and-true way: digging down into the Pennsylvanian ground.
MSC President James “Jim” Welty hosted a luncheon, largely attended by MSC members, Tuesday at the Pennsylvania College of Technology (PCT).
After pointing out that Lycoming County alone has 1,000 producing MSC wells, Welty used the event to announce the launch of the MSC’s newest committee: the Power Generation, AI and Data Center Committee.
“Williamsport and the greater Lycoming County region has all the critical pieces to meet the demand, starting with natural gas, a ready workforce, abundant water, and land to build the digital infrastructure our economy depends on,” said Jason Fink, president and CEO of the Williamsport/Lycoming Chamber of Commerce and moderator of the luncheon. “Tens of billions of dollars in data center projects have already been announced for the greater region, and we believe we’re at the beginning of a new wave of growth for our economy.”
AI data centers require 50 to 100 times more electricity compared to traditional data centers. Welty believes the MSC has what the rest of the world wants: the gas to power those centers.
“The new economy will be driven by artificial intelligence, and Pennsylvania’s natural gas industry stands ready to help ensure America wins the global AI race,” said Welty. “There’s no more readily available, cleaner, and more American resource than natural gas, and it’s natural gas that’s going to be at the forefront of the AI revolution.”
During his powerpoint presentation, Welty read aloud a portion of America’s AI Action Plan — specifically part of its preamble credited to President Trump: “As our global competitors race to exploit these technologies, it is a national security imperative for the United States to achieve and maintain unquestioned and unchallenged global technological dominance.”
“I don’t think I could have said it better,” said a beaming Welty.
The luncheon featured a panel of speakers focusing on the accelerating energy needs of hyperscale data centers and AI-driven technologies, and what this means for grid reliability, permitting and infrastructure investment across northcentral and northeast Pennsylvania. Panelists included Kevin Sunday of Team Pennsylvania, Adam Galczynski of UGI Energy Services, and PCT Dean of Engineering Technologies Dr. Bradley Webb.
Local GOP shifts public focus to energy
A host of Pa. republicans have begun organizing public discussions and holding roundtables with business and education leaders solely focused on what comes next in the state’s energy industry.
The conversations — and their public nature — are sparked by Senator Dave McCormick and Trump announcing more than $90 billion in investments in the commonwealth’s energy generating assets, data centers, and workforce development at a Pennsylvania Energy and Innovation Summit in Pittsburgh on July 15.
U.S. Representatives Dan Meuser, Glenn “GT” Thompson, Ryan Mackenzie, and Robert Bresnahan held an energy-focused roundtable at PCT on July 30 — less than a week before Welty’s luncheon.
Here’s what they discussed:
Workforce development
The industry needs workers to further its development, and in the leaders’ views, educational institutions are where to harvest them.
“I know the eliminating that Department of Education — I won’t get into that — it can be controversial. But, I’ve always thought it would have been kind of cool to merge the Department of Education with the Department of Labor or the Department of Commerce because that’s the whole purpose of education — to fuel the economy,” Representative Thompson said.
On educational partnerships with the industry, Mackenzie said it was paramount to for schools like PCT to focus on “getting people in and getting them in as quickly as possible.”
Reducing regulations for building technology infrastructure
Industry innovators emphasized the urgency of upgrading permitting systems and expanding access to reliable energy infrastructure.
As energy demand surges — especially with the rise of AI and data centers — speakers stressed their want for fewer regulations and policies that support domestic production, including new investments in power transmission, siting reforms, and localized supply chains.
Mackenzie spoke about successful efforts in achieving better “tax certainty” in Congress, and that “regulatory stuff is the next big one” that he and his colleagues intend to focus on, aided by the Trump Administration.
“I’ve been encouraged to hear from the Trump Administration that they’d like a complete review of regulations. Because it is never when I hear from witnesses, it’s rare that it’s one regulation that’s the problem; It’s the pile, the accumulation of regulations… ‘We had to hire a new clients officer. We had to do this. We changed around that, we stopped the project because of just regulation after regulation after regulation was confining us.’ So, we’re grateful (the Trump Administration) is doing it. I wish they would do the same thing at the state level,” the freshman congressman explained.
Meuser expressed a similar sentiment, cheekily remarking that the “blue tape” in the field needs cut.
Local energy business reps weigh in
Jessie Bonnice, president of Susquehanna County-based C2G Energy Services, added his insight into other developments in the energy industry — like opportunities to extract rare earth elements from wastewater — a byproduct from gas and oil welling.
Lithium was discussed as one of the most sought-after extracted elements.
Bonnice described how C2G has been anticipating technology to develop enough to where they could begin taking full advantage of the “enormous amount” of lithium in Pennsylvanian wastewater.
“We have the most lithium, and the ability to extract that and put it into market here in the United States is an unprecedented opportunity,” Bonnice said to the four congressmen.
On the active welling side of the business, Larry Allison of Allison Crane & Rigging, a fourth-generation construction company owner whose great grandfather started the construction company back in the early 1940s, used his time to speak to the four representatives about the financial challenges his construction business faces due to tariffs and rising costs of materials and equipment.
Allison also mentioned his experience as an attendee of the Pittsburgh energy summit last month, saying he sat behind and spoke to Mike Rowe — former host of “Dirty Jobs” and now a prominent podcaster — about how no matter how far AI advances, education leaders need to continue pushing out workers with a skilled trade in order for the industry to continue growing.
Lunch at Pam’s, anyone?
On the horizon, State Sen. Gene Yaw and Rep. Joe Hamm have arranged a luncheon on Aug. 26, from 11 a.m. to 1 p.m. at Pam’s Restaurant in Dushore.
The pair will discuss the annual state budget and reducing spending, “eliminating unnecessary regulations that hinder economic growth, and unleashing Pennsylvania energy.” Tickets are $35.