Nscale Expands AI Infrastructure Footprint with Acquisition of West Virginia’s Monarch Compute Campus
San José, California – In a move poised to significantly reshape the landscape of artificial intelligence infrastructure, Nscale has finalized an agreement to acquire American Intelligence & Power Corporation (AIPCorp), including the groundbreaking Monarch Compute Campus in Mason County, West Virginia. The acquisition, announced on March 16, 2026, aims to establish one of the world’s largest AI factories, addressing the growing demand for robust and scalable computing power required for advanced AI development. This strategic expansion underscores Nscale’s commitment to providing vertically integrated AI solutions, from energy provision to advanced compute capabilities.
The Monarch Compute Campus represents a pivotal asset in Nscale’s growth strategy. Spanning approximately 2,250 acres, the campus is notable as the first state-certified AI microgrid in the United States, boasting the potential to scale its power capacity to over 8 gigawatts (GW). This capability is crucial in overcoming a key bottleneck in the AI industry: the availability of sufficient, reliable, and cost-effective energy to power increasingly complex AI workloads. The acquisition also marks the creation of Nscale Energy & Power, a modern global division headquartered in Houston, Texas, dedicated to managing and expanding the company’s energy infrastructure.
A New Era for AI Infrastructure in the US
Nscale’s decision to invest heavily in US-based AI infrastructure reflects the growing importance of the American market. According to Josh Payne, CEO of Nscale, “Nscale is a global company, and the US is the world’s largest AI infrastructure market. AI infrastructure needs to be built where demand is, and right now a significant share of that demand is in the United States.” This acquisition builds upon Nscale’s existing US presence and demonstrates the company’s rapid scaling efforts to serve a global clientele. The Monarch Compute Campus is designed specifically for AI workloads, offering a unique advantage in a market increasingly reliant on specialized infrastructure.
The West Virginia campus is expected to come online in phases, with an initial power capacity of 2 GW anticipated by the first half of 2028. Further expansion is planned to reach approximately 8 GW by 2031, solidifying its position as a major hub for AI computing. The site’s infrastructure is supported by West Virginia’s legislative framework under HB 2014, which facilitated the development of the AI-focused microgrid. Initially, the power generation strategy will utilize natural gas, employing Caterpillar units enhanced by integrated battery energy storage systems. Previous plans for a hydrogen plant have been adjusted in favor of more readily available energy solutions, demonstrating a pragmatic approach to meeting immediate energy demands.
Nscale Energy & Power: A Vertically Integrated Approach
The establishment of Nscale Energy & Power, led by Daniel Shapiro as Director of Energy and Bengt Jarlsjo as Deputy Director of Energy, signifies a strategic move towards vertical integration. This new division will oversee the development and operation of the Monarch Compute Campus’s energy infrastructure, ensuring a reliable and cost-effective power supply for Nscale’s AI computing operations. The entire AIPCorp and Fidelis New Energy team, including both management and personnel, will join Nscale as part of the acquisition, bringing nearly a decade of experience in AI infrastructure development.
Shapiro emphasized the synergy created by this combination, stating, “The vision of AIPCorp always was to create the vertically integrated power and compute model that this combination enables immediately. This combination, coupled with Nscale’s strong balance sheet, delivers exactly what the growing AI market demands: a new, integrated, and unconstrained cloud platform designed to scale.” This integrated approach aims to eliminate bottlenecks and provide a seamless experience for Nscale’s customers.
Financial and Legal Aspects of the Acquisition
Morgan Stanley & Co. LLC served as financial advisor to Nscale, although Latham & Watkins provided legal counsel. Greenhill, a subsidiary of Mizuho, acted as the exclusive financial advisor to AIPCorp, and Vinson & Elkins LLP provided legal advice to Fidelis New Energy. These firms played a crucial role in facilitating the complex transaction, ensuring a smooth and efficient transfer of ownership and assets. The financial details of the acquisition were not publicly disclosed.
The acquisition of AIPCorp and the Monarch Compute Campus positions Nscale as a key player in the rapidly evolving AI infrastructure market. The company is building a global hyperscaler designed specifically for AI, offering vertically integrated solutions and modular data center designs in Europe, North America, and other regions. Nscale’s focus is on providing the foundational computing power needed for AI training, precise configuration, and enterprise-scale AI inference.
Microsoft Partnership and Future Outlook
Adding to the significance of this acquisition, Nscale has also signed a letter of intent (LOI) with Microsoft. This agreement will see Microsoft leasing 1.35 GW of AI compute capacity at the Monarch Compute Campus, demonstrating the strong demand for Nscale’s infrastructure and solidifying a key partnership in the AI ecosystem. While letters of intent are not binding agreements, they signal a strong commitment from both parties. This partnership underscores the growing need for specialized AI infrastructure to support the development and deployment of advanced AI applications.
The Monarch Compute Campus, with its unique combination of scale, energy infrastructure, and state certification, is poised to become a critical component of the global AI landscape. Nscale’s investment in this facility represents a significant step towards addressing the growing demand for AI computing power and accelerating innovation in the field. The company’s vertically integrated approach, coupled with its strategic partnerships, positions it for continued growth and success in the years to come.
The next key milestone for the Monarch Compute Campus is the commencement of construction to achieve the initial 2 GW of power capacity, slated for the first half of 2028. Continued updates on the project’s progress and further partnerships are expected in the coming months. We encourage readers to share their thoughts on this development and its potential impact on the future of AI in the comments below.