Nscale has signed a letter of intent with Microsoft to provide 1.35 gigawatts of AI compute capacity, positioning the Monarch AI Campus in West Virginia as a flagship deployment site for next-generation AI infrastructure powered by NVIDIA technology.
The facility will serve as a major deployment hub for NVIDIA Vera Rubin GPUs, configured as Vera Rubin NVL72 systems and built using the NVIDIA Vera Rubin DSX AI Factory reference design. This initiative is expected to establish one of the world’s largest dedicated AI compute environments for training and inference workloads.
Strategic Acquisition Strengthens Infrastructure Footprint
In addition to the announcement, Nscale also announced the acquisition of American Intelligence & Power Corporation, a company funded by Fidelis New Energy and 8090 Industries. The acquisition includes the Monarch Compute Campus, a large-scale facility covering up to 2,250 acres of land in Mason County, West Virginia, as well as the United States’ first state-certified AI microgrid, which can scale up power capacity beyond eight gigawatts.
The acquisition is a boost for Nscale, particularly in providing high-density infrastructure for AI, as well as solving one of the largest problems affecting the industry: power availability for large-scale data centers.
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Building One of the World’s Largest AI Compute Deployments
Under the collaboration, Nscale will design, build and operate advanced AI data center infrastructure to support Microsoft’s growing demand for high-performance computing. The deployment will roll out in multiple phases starting in late 2027, incorporating not only current-generation GPUs but also future NVIDIA technologies.
The project will be executed under a long-term business model with a combination of multi-year compute services agreements and extended data center leasing agreements. This reflects the strategic significance of the Monarch Campus as a foundational element of next-generation artificial intelligence infrastructure in the United States.
“This collaboration with Microsoft marks a pivotal milestone both for Nscale and the development of the Monarch Campus,” said Josh Payne, CEO of Nscale. “By integrating our specialized AI infrastructure with Microsoft’s global platform, we are creating a foundation for innovation that can scale alongside the most ambitious AI models in the world”.
Addressing Surging Demand for AI Data Centers
The announcement has come at a time when global demand for AI-driven data center capacity is rising rapidly. Projections suggest that the current infrastructure supply is struggling to cope with this rise due to factors such as availability of power and deployment schedules. For instance, according to McKinsey & Company’s estimates, AI-driven data center demand is expected to rise to 156 gigawatts by 2030.
The Monarch Campus is also expected to build on Nscale’s current capacity of more than 1 gigawatt, with the scalability of the location expected to allow for rapid expansion to meet future demands. The potential 8GW power capacity of the location makes it one of the biggest developments in AI infrastructure currently announced.
Connectivity and Strategic Location Advantages
The new campus is also expected to have high-speed fiber connectivity to other major AI and cloud hubs in the United States. The strategic location of the new campus, which is close to other key infrastructure centers such as Ashburn and Chicago, is expected to provide low latency performance.
“Microsoft’s datacenter approach is to build the best global infrastructure informed by near-term and long-term demand,” said Jon Tinter, President, Business Development and Ventures at Microsoft. “Our investments blend owned datacenters, leased facilities, and strategic collaborations. This collaboration with Nscale and NVIDIA is an important step to deliver meaningful AI innovation to our customers.”
“AI is becoming essential infrastructure for every industry,” said Nico Caprez, Vice President, Global AI Infrastructure Growth, NVIDIA. “With this large-scale NVIDIA DSX AI Factory Blueprint, Nscale is building the infrastructure required to produce intelligence at industrial scale and power the next wave of global innovation.”