He was 89 years old. The Hazleton facility houses 1,277 maximum-security inmates and is located in Bruceton Mills.
The death of Bulger was announced by the Federal Bureau of Prisons on Tuesday, but a cause was not provided.
He was arrested in California in 2011.
"Life-saving measures were initiated immediately by responding staff", the spokesperson said.
Bulger, previously held in Florida, was convicted of 11 murders himself during his bloody reign as crime boss in his hometown of Boston.
Bulger was organized crime boss of the Winter Hill Gang for a number of years and was second after terrorist Osama bin Laden the FBI Ten Most Wanted Fugitives list for 12 years.
Bulger was born in South Boston during the Depression, who got the nickname "Whitey" growing up for his blonde hair.
The prison is a high-security jail with a minimum security satellite camp.
Among other things, the jury put Bulger at the center of an ambitious plot by his Winter Hill gang and a retired Boston FBI agent named H. Paul Rico to penetrate the USA pari-mutuel industry by taking over the World Jai Alai company. In 2013, Bulger was convicted of various crimes, including being linked to 11 murders.
Update: According to TMZ, Bulger's death is being treated as a homicide. On the eve of the indictment, Bulger was tipped off by his Federal Bureau of Investigation handler John Connolly.
The FBI had been searching for Bulger for 16 years before his arrest.
She remains locked up at a women's prison in Minnesota.
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