Powering the Future: Why Western Pennsylvania is a Strategic Hub for Data Center Growth

Pittsburgh and the entire Western Pennsylvania region are emerging as a highly strategic location for data center development. Thanks to abundant natural gas resources, resilient infrastructure, and a collaborative regulatory environment, the region offers data center developers the opportunity to reduce costs, enhance uptime, and accelerate deployment.

“Western Pennsylvania sits atop one of the most productive natural gas fields in the world,” says Sean Coughlan, Manager of Large Volume Sales at Peoples Natural Gas. “This gives energy-intensive operations like data centers a reliable, scalable, and cost-effective power source—especially when paired with behind-the-meter generation.”

Natural Gas as a Competitive Advantage

Unlike overhead electricity lines, which are vulnerable to weather-related disruptions, natural gas is delivered through underground pipelines. This distribution feature makes natural gas a more resilient energy source, which is particularly valuable for microgrids—localized power systems that ensure continuous power, even during electric grid outages.

Peoples, the largest natural gas distribution company in Pennsylvania, is positioned to support this energy transformation. “Our infrastructure—including a centralized gas control center, emergency dispatch operations, and a network of real-time monitoring sensors—enables us to provide 24/7 service reliability,” Coughlan adds.

The company also supports a competitive energy marketplace. Peoples has over 20 approved natural gas suppliers operating on its system, offering customers, including data centers, a range of competitive commodity options. Paired with Peoples’ balancing services, this ensures cost-effective reliable access to natural gas supply.

Accelerating Time to Market

One of the most significant hurdles for new data center projects is the delay and expense of electric grid upgrades. “In many cases, required electric grid infrastructure improvements can take years and millions of dollars,” says Coughlan. “By contrast, installing an on-site natural gas-powered microgrid can get a facility operational much faster.”

This approach not only enables quick deployment but also creates long-term energy resiliency. Facilities can start with a microgrid and integrate with the electric grid later, benefiting from dual power sources and enhanced uptime.

Peoples Gas actively collaborates with regional economic development agencies to streamline site readiness. “We recognize the urgency behind these projects and prioritize timely responses to natural gas inquiries,” Coughlan notes. “Access to high-pressure natural gas is essential, and we help ensure that it is available.”

In addition to energy infrastructure, Western Pennsylvania offers proximity to a skilled, tech-savvy workforce and access to world-class research institutions. For companies planning long-term operations, the region’s affordability, academic pipeline, and business-friendly policies make it a compelling destination for sustainable, scalable growth.

Planning for High Demand

Due to the significant volumes of natural gas required, Peoples encourages early-stage engagement from developers. “The sooner we’re involved, the sooner we can evaluate system capacity and determine any necessary upgrades,” Coughlan says.

Peoples uses advanced modeling software to identify infrastructure needs, deliver cost estimates, and outline construction timelines. This data-driven process helps developers make informed decisions without losing momentum on tight schedules.

Peoples also helps customers navigate regulatory processes and coordinates with utilities and contractors to avoid delays. Its integrated approach helps projects stay on track and achieve operational readiness faster.

A Partner in Long-Term Reliability

As data center demand rises, Peoples is proactively evolving to meet future energy needs. Its integrated approach, combining physical infrastructure, competitive energy markets, and advanced analytics, positions it as a key strategic partner for large-scale technology infrastructure.

“Our mission is to be more than a utility,” Coughlan concludes. “We aim to be a trusted partner that enables data center development in Western Pennsylvania with speed, reliability, and long-term value.”