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Alpha Compute Signs $55 Million Term Sheet for Pennsylvania Data Center Project

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Alpha Compute Corp. entered a binding term sheet deal to acquire mineral, surface and pore-space assets in northern Pennsylvania and secure power and data center capacity for a planned campus, the company said in a Tuesday statement.

The agreement gives Alpha Compute Management LLC, a company subsidiary, an exclusive option to acquire the assets for a base price of $55 million. A $3 million deposit would be payable after execution of a definitive property purchase agreement and satisfaction of specified conditions and would be credited toward the purchase price at closing.

Alpha Compute, listed on NASDAQ under the ticker ALP, has a market capitalization of $4.48 million, according to CNN, classifying it as a micro-cap company.

British Virgin Islands-based Alpha Compute said it would serve as the offtaker under a binding but conditional intra-company commitment for an initial 200 megawatts of planned power and data center capacity, with potential expansion to 1 gigawatt.

The counterparty names were not disclosed, and Alpha Compute said the project remains subject to due diligence, permitting, financing, and definitive agreements.

The assets include about 1,800 unleased Marcellus oil and gas mineral acres, with a 100% net revenue interest subject to title confirmation, as well as surface and pore-space properties. Existing leasehold rights in the Utica and deeper formations are excluded.

The project is greenfield, with no operating power or data center capacity currently at the site. Alpha Compute said it plans to pursue development using non-dilutive capital through special-purpose vehicles and joint ventures with energy and development partners.

A third-party evaluation estimated that gas produced from the Marcellus could support 200 MW of continuous generation for 10 years at an all-in delivered cost of about 5.85 cents per kilowatt-hour, below estimated PJM commercial and industrial rates of 8 cents to 10 cents.

Development plans call for 12 Marcellus wells, with average laterals of about 13,000 feet, and two new well pads. Nearby interstate gas pipelines and existing electric infrastructure could support future expansion, subject to commercial arrangements and approvals.

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