Nscale Finalizes Acquisition of AIPCorp to Develop Massive AI Production Hub in West Virginia

On March 16, 2026, Nscale officially announced the successful acquisition of American Intelligence & Power Corporation (AIPCorp), representing a major strategic shift toward vertical integration within the artificial intelligence and energy sectors. This landmark transaction, which received sponsorship from Fidelis New Energy and 8090 Industries, provides Nscale with full control over the Monarch Compute Campus in Mason County, West Virginia. The primary objective of this move is to establish one of the world's most significant manufacturing plants dedicated to AI hardware and infrastructure.

The acquisition does more than just secure a physical asset; it also marks the launch of Nscale Energy & Power, a new global division headquartered in Houston, Texas. This development highlights the company's commitment to maintaining total control over the supply chain for both energy and computing resources. Spanning approximately 2,250 acres, the Monarch Compute Campus is positioned as the first state-certified AI microgrid in the United States, featuring the potential to scale its power capacity to more than 8 gigawatts (GW).

Initially supported by West Virginia’s legislative framework under HB 2014, the site's infrastructure is engineered for multi-gigawatt expansion. The power generation strategy utilizes natural gas, specifically employing Caterpillar units that are further enhanced by integrated battery energy storage systems. The first phase, providing 2 GW of capacity, is expected to be operational by the first half of 2028, with long-term plans to reach approximately 8 GW by 2031. Notably, the facility was previously intended to be powered by a hydrogen plant, indicating a strategic evolution toward energy solutions that are more readily available in the current market.

As part of this massive expansion, Nscale has also entered into a letter of intent with Microsoft to supply 1.35 GW of AI computing power, which will be hosted at the Monarch campus. This capacity will be powered by NVIDIA Vera Rubin NVL72 GPUs, making the site a flagship location for the deployment of the NVIDIA DSX AI Factory architecture. Josh Payne, the CEO of Nscale, remarked that this acquisition significantly accelerates the company’s growth within the United States, allowing it to meet high domestic demand while establishing itself as a comprehensive "neocloud" AI hyperscaler.

The vertical integration achieved through the AIPCorp takeover empowers Nscale to manage its own energy requirements directly. Daniel Shapiro, who has been named the Chief Energy Officer of the new division, stated that this structure provides a "bottleneck-free neocloud platform" designed specifically for massive scaling. Shapiro is joined by Bengt Jarlsjo, the newly appointed Deputy Chief Energy Officer, along with the existing teams from AIPCorp and Fidelis New Energy, who bring extensive expertise in AI infrastructure development. The "behind-the-meter" architecture ensures that the growth of this AI facility does not come at the expense of local utility consumers, a protection guaranteed by West Virginia law.

In finalizing the deal, Nscale was advised by Morgan Stanley & Co. LLC on financial matters, while Latham & Watkins provided legal counsel. AIPCorp was originally founded in 2021 by Fidelis New Energy, with 8090 Industries serving as a co-founder. The announcement of the transaction took place in San Jose, California, during the GTC 2026 conference, highlighting a broader industry trend toward energy self-sufficiency for large-scale computing clusters. This move addresses the critical infrastructure shortages that have previously hindered the development of advanced artificial intelligence technologies.

By consolidating energy production and high-performance computing under one roof, Nscale is setting a new standard for the industry. The transition to a natural gas and battery-supported microgrid at the Monarch campus demonstrates a pragmatic approach to the immense power needs of modern AI. As the demand for generative AI and complex data processing continues to climb, Nscale’s ability to operate independently of the traditional power grid provides a vital competitive edge in the global tech landscape.