Nscale in Talks to Supply Anthropic With AI Power
The potential deal focuses on expanding the Monarch data center campus in West Virginia.
Updated on Oct. 19, 2026 in Data Centers
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Nscale is currently negotiating a massive deal to provide AI cloud computing power to Anthropic. The proposed agreement could reach a value of US$45 billion and involves the construction of a second facility at the Monarch data center campus.
Why it matters
This deal underscores the rapid scaling of infrastructure needed to support advanced AI models. By leveraging large-scale power capacity, Nscale aims to solidify its position as a critical service provider for major tech firms.
The proposed second Monarch facility will deliver 460 megawatts of computing power. The building is designed to run on Nvidia Vera Rubin AI chips.
The players
Nscale
Nscale is a data center provider that offers AI cloud computing power via its dedicated campus facilities.
Anthropic
Anthropic is a major AI research and development company that utilizes cloud infrastructure for model training.
Nvidia
Nvidia is a prominent technology company that develops the specialized AI chips required for high-performance computing centers.
Microsoft
Microsoft is a multinational technology corporation that previously planned to anchor a flagship Nscale facility.
CoreWeave
CoreWeave is a specialized cloud provider currently facing market scrutiny due to a significant debt load.
The details
Nscale plans to expand its Monarch campus in West Virginia to accommodate the massive demand from AI developers. Anthropic maintains the right of first refusal on a third facility at the site, following Microsoft's recent withdrawal from a different flagship project.
Timeline
August 2026: Anthropic reached an initial deal to rent cloud power from Nscale.
October 19, 2026: Ongoing negotiations for the new facility are confirmed.
2030s: Projected completion timeline for the delayed Microsoft data center project.
The Tech Race
This move signals a broader arms race in the data center sector as firms rush to deploy Nvidia Vera Rubin AI chips to satisfy the immense energy and processing demands of modern AI models. It marks a transition from standard cloud architecture to specialized high-density power facilities required for the next generation of artificial intelligence.
While the deal focuses on industrial-scale computing, the infrastructure development represents massive capital investment in the West Virginia region. For users of AI services, this scaling is intended to improve the availability and speed of future cloud-based models.
The takeaway
The rapid growth of companies like Nscale reflects the intense demand for physical infrastructure in the AI sector. Investors should monitor how firms manage debt loads, such as the US$50 billion debt cited for CoreWeave, as they navigate these capital-intensive expansions.
Further reading
Learn more about the infrastructure supporting the AI industry on our Data Centers page.
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