Every time you send an email, upload a photo, or stream a movie - you're tapping into a vast digital ecosystem powered by data centers. These facilities make digital life possible, but their growing footprint brings serious energy challenges that can’t be ignored.

Behind the seamless convenience of the cloud is an enormous demand for energy, one that is only growing with the rise of artificial intelligence (AI). As the need for speed, storage, and reliability increases, so does the importance of dependable energy infrastructure.

At UGI Energy Services (UGIES), we understand the unique power demands of this fast-growing industry. In this blog, we'll explore how data centers are driving energy innovation and how reliable natural gas solutions are helping power the cloud more efficiently and sustainably.

The Energy Behind the Cloud

Data centers consume a massive amount of energy. In 2023, AI data centers consumed 4.4% of all electricity used in the United States, a figure expected to rise significantly (estimated between 6.7% to 12% by 2028) with continued expansion.

This energy is not only used to run servers 24/7, but also to cool them, as high-performance computing generates substantial amounts of heat. The dual need for power and temperature control means electric redundancy, reliability, and efficiency are non-negotiable for data center operations.

Natural Gas: The Dependable, Cleaner and Accessible Fuel for Power Generation

For data center developers and operators, securing a steady, efficient, and scalable energy supply is critical, and natural gas is playing a central role in meeting that challenge. As a leading energy provider, UGIES supports this need with tailored natural gas solutions for high-demand facilities like data centers.

While datacenters can draw power from the grid, many developers are turning to on-site or near-site natural gas generation to boost resilience and ensure some level of control over this critical operational resource. Well-established natural gas infrastructure assets, such as those owned and operated by UGIES, offer a quick-to-deploy, reliable and power generation solution that can standalone or be integrated with the local grid. Further, natural gas is a preferred alternative to traditional fuels, producing fewer emissions and particulates compared to coal or diesel.

In short, natural gas enables data centers to achieve excellent energy efficiency, meet uptime requirements, and manage peak loads more effectively. It's also well-suited to integrate with renewable natural gas (RNG), further enhancing its environmental profile.

How UGIES Supports the Data Center Industry

From initial planning to ongoing operations, our energy experts support comprehensive energy solutions that help data centers thrive in competitive markets.

1. Direct Pipeline Access

Our robust pipeline network across Pennsylvania, Ohio, and West Virginia offers direct-connect natural gas solutions, ensuring data centers have access to reliable, 24/7 energy for power generation. If an issue arises, our team is on hand to respond quickly and efficiently.

2. Full-Service Infrastructure Development

Considering a new data center in the region? UGIES has the expertise to design, build, own, operate, and maintain critical natural gas infrastructure, including pipelines, compressor stations and storage assets. Even in cases involving non-UGIES assets, we can serve as a critical infrastructure partner to help improve operational resilience.

3. Backup and Bridge Power Solutions

Data centers face the challenge of powering energy-intensive compute operations, and cooling. UGIES supports this by supplying reliable fuel for backup generation and CCHP (combined cooling, heat and power), and, through our power developer partnerships, enables fast-track bridge power solutions until such time permanent systems are in place.

4. Energy Procurement and Hedging

Data centers can access low-cost Marcellus and Utica shale gas, benefiting from flexible storage and peaking capabilities to manage demand spikes and load variations. Our energy experts work with clients to optimize procurement strategies and mitigate risk. UGIES’ maintains a robust portfolio of pipeline and storage capacity in the heart of Pennsylvania’s Marcellus Shale region.

5. RNG and Future-Focused Energy Options

As data centers seek to meet sustainability targets, Renewable Natural Gas (RNG) is a compelling option. UGIES is actively involved in integrating RNG into our supply chain, offering data centers a low-carbon fuel alternative without compromising reliability.

Why Natural Gas Infrastructure Matters

Location matters when it comes to powering data centers. Regions with robust natural gas infrastructure, like those served by UGIES, are increasingly attractive to developers for several reasons:

• Energy Security: Direct pipeline access reduces dependence on the electric grid.
• Cost Efficiency: Proximity to affordable shale gas means long-term savings.
• Speed to Market: Existing infrastructure coupled with highly capable partners shortens project timelines.
• Sustainability: Clean-burning gas and RNG help meet environmental goals.

By providing the energy backbone that data centers require, UGIES is helping to fuel the next generation of digital innovation.

Your Energy Partner

Though the cloud is virtual, the energy powering it is very tangible. Our extensive natural gas infrastructure across Pennsylvania, Ohio, and West Virginia, combined with decades of energy expertise, makes us a reliable partner in supporting datacenters today and well into the future.

Connect with UGI Energy Services today and discover how we can support your datacenter with reliable, cost-effective natural gas solutions.