Appalachia E&Ps Take Advantage of Natural Gas Demand Growth for In-Basin Data Centers

With new natural gas pipelines out of the Northeast hard to come by, exploration and production (E&P) companies are looking for in-basin growth opportunities from energy-intensive data centers built near supply sources.

The Appalachian Basin, the largest natural gas production region in the United States, extends from central Alabama to the Adirondack Mountains in New York. It is known for its rich natural resources, including oil and gas, particularly from formations like the Marcellus and Utica shales.

In 2024, more natural gas was produced in the Appalachia region of the Northeast than in any other U.S. region, accounting for 31%, or 35.6 Bcf/d, of marketed natural gas production, according to the U.S. Energy Information Administration. However, that was only 0.1% more than was produced in 2023.