Appalachian Basin Positioned as Next U.S. AI and Energy Hub, Says Bryce Custer, SIOR, CCIM at AI and Energy Conference

The Appalachian Basin is emerging as a prime destination for AI-driven data center growth, according to Bryce Custer, SIOR, CCIM, First Vice President of Energy Services at NAI Burns Scalo, who addressed industry leaders at the Appalachian AI and Energy Conference in Southpointe. Custer, a recognized authority in site selection and regional development, outlined the region’s unique advantages for supporting the next wave of digital infrastructure. 

Speaking to a sold-out conference, Custer highlighted the convergence of abundant, affordable energy resources and strategic infrastructure as key factors setting the Appalachian Basin apart. “The Appalachian Basin stands out because of a combination of factors that are increasingly rare in the U.S. site selection landscape,” Custer stated. “We have an abundant and cost-effective natural gas supply, established infrastructure, low disaster risk, ample land, and a business-friendly regulatory environment. When you add in workforce and higher education, it creates a compelling value proposition for companies looking to invest in large-scale AI infrastructure.” 

Custer pointed to the surging power needs of data centers, particularly those supporting artificial intelligence applications. He noted that U.S. data centers could require between 35 and 85 gigawatts of power by 2029, a dramatic increase that puts pressure on the national grid. “The Appalachian Basin’s energy resources, particularly natural gas, position us to meet this demand reliably and cost-effectively,” he said. “Our existing pipeline networks and proximity to generation assets mean we can deliver energy where it’s needed, when it’s needed. This is a huge advantage over regions that face constraints or higher costs.” 

Beyond energy, Custer emphasized the region’s large, affordable land parcels, low risk of natural disasters, and government support as critical factors for attracting data center investment. “Many metropolitan areas simply don’t have the acreage required for hyperscale data centers. Here, we can offer large, contiguous parcels at competitive prices,” he explained. 

Drawing on his extensive background in petrochemicals, steel, renewables, and infrastructure, Custer described the region’s transition from traditional manufacturing to technology-driven growth. “The skills, infrastructure, and mindset that powered our manufacturing sector are now being redirected to support digital infrastructure. It’s an exciting evolution,” he said. 

Custer urged local stakeholders to take proactive steps to attract investment, including identifying suitable sites, ensuring utility readiness, and developing workforce training programs in partnership with educational institutions. He also stressed the importance of public-private collaboration and maintaining a favorable regulatory climate. 

While natural gas remains the region’s primary energy asset, Custer acknowledged the growing importance of renewables. “Many data center operators have sustainability mandates, so integrating solar, RNG, and even hydro with our existing assets will be crucial,” he noted. 

Looking ahead, Custer identified infrastructure modernization and workforce readiness as the region’s primary challenges. “Upgrading transmission lines, expanding broadband, and ensuring water availability for cooling are all essential. We also need to scale up training programs to supply the talent these facilities require,” he said. 

Despite these challenges, Custer expressed optimism about the Appalachian Basin’s future. “We have the raw materials, the people, and the know-how to lead in this space. If we execute on our strategy, we can deliver economic growth, create high-quality jobs, and help secure America’s digital future,” he concluded. 

The Appalachian AI and Energy Conference brought together industry experts, policymakers, and economic development leaders to discuss the region’s role in powering the next generation of AI infrastructure. Custer’s remarks underscored the Appalachian Basin’s readiness to seize this opportunity and shape the future of U.S. technology and energy. 

For more information about energy services and site selection opportunities in the Appalachian Basin, please contact Bryce Custer, SIOR, CCIM, First Vice President of Energy Services at NAI Burns Scalo. 

About NAI Burns Scalo 
NAI Burns Scalo, an advisory and investment organization headquartered in Pittsburgh, Pennsylvania, is an integral part of NAI Global, which spans over 325 offices across 55 countries. Currently with offices in Florida, Pennsylvania, and West Virginia, our strategic positioning ensures exceptional outcomes for clients with access to over 6,000 professionals worldwide. With nearly 100 dedicated specialists, we seamlessly integrate into this expansive network, excelling both locally and globally. 

Since 1956, we’ve been at the forefront of providing commercial real estate services such as brokerage, property management, development, and construction. We’ve learned the ropes, navigated the tides, and honed expertise that only comes from over six decades of experience. This is about more than just finding a commercial space for your business. It’s about delivering life-changing real estate experiences to propel you forward. To learn more, visit NAIBurnsScalo.com.