The West Virginia data center project could expand artificial intelligence computing infrastructure through a proposed second facility at Nscale’s Monarch campus. Anthropic is reportedly negotiating another multibillion-dollar agreement with the British neocloud provider, CNBC reported on October 20, 2026.
The proposed arrangement would secure computing capacity at a second 460-megawatt facility, according to reporting by CNBC and other financial news outlets. However, the companies have not confirmed a final agreement.
The proposed development reflects surging demand for infrastructure supporting large artificial intelligence models. It also highlights the construction, power supply and financing challenges facing developers building energy-intensive data centers. If completed as planned, the second facility would strengthen the Monarch campus’s role in Anthropic’s expanding computing infrastructure.
The potential $45 billion figure represents the reported value of the computing agreement, not a disclosed construction budget. The distinction matters because the arrangement would cover computing capacity rather than simply the physical building.
West Virginia Data Center Project Targets 460MW Capacity
The proposed second building would add 460 megawatts of computing capacity at Nscale’s Monarch campus in West Virginia. Bloomberg first reported the negotiations, while CNBC subsequently reported the discussions, citing a person familiar with the matter. Data Center Dynamics also reported that the proposed agreement could include Nvidia’s Vera Rubin chips.
The companies previously reached a similarly valued agreement in August 2026 for an initial facility at the campus. Therefore, the new negotiations could establish another major commitment between the AI developer and infrastructure provider.
Moreover, Anthropic reportedly holds a right of first refusal for a potential third building at the site. That arrangement could create further expansion opportunities, although neither the third facility’s construction schedule nor its cost has been confirmed.
The campus expansion would require substantial coordination across building construction, electrical infrastructure, cooling systems and high-performance computing equipment. Developers must align these systems before the facility can deliver its intended computing capacity.
The project’s energy requirements also make power generation and reliability central considerations. Reuters reported that the proposed campus development would use an on-site gas-fired power plant to avoid delays associated with grid connections. However, the available reporting does not establish a final construction schedule or confirm that all necessary approvals and financing are secured.
The proposed West Virginia data center expansion reflects the wider race to build AI infrastructure across the United States. A similar push is underway in Wisconsin, where Meta plans a nearly $1 billion data center in Beaver Dam to support its expanding artificial intelligence and cloud computing operations. The two developments highlight how major technology companies are committing billions of dollars to computing infrastructure as AI demand grows.
West Virginia Data Center Project Faces Power and Financing Challenges
The proposed expansion comes as AI infrastructure providers face growing pressure to deliver large computing projects on schedule. Reliable electricity, access to capital and equipment availability remain critical to successful execution.
Nscale has also faced challenges with a separate project near London. The company reportedly lost Microsoft as the anchor tenant for a planned 50MW facility in Loughton after power-grid connection delays. Microsoft and Nscale maintained that the setback did not end their broader relationship.
The London development illustrates how electricity infrastructure can affect data center delivery, even when customers demonstrate strong demand. For the West Virginia campus, an on-site generation strategy could reduce exposure to grid connection delays. Nevertheless, the developer must still address permitting, financing, construction and operational requirements.
Financial pressures also complicate the proposed agreement. The Financial Times reported that Nscale faces funding and execution risks as it prepares for a potential public listing. Its reported financial position and reliance on major customers underscore the importance of turning prospective contracts into operating infrastructure.
Meanwhile, Anthropic continues pursuing computing capacity to support its Claude artificial intelligence products. The proposed agreement would give the company access to additional infrastructure without requiring it to develop and operate the entire facility itself.
Under the reported arrangement, Anthropic would pay for computing power as Nscale delivers it. Nscale would retain ownership and operational responsibility for the data center and its hardware. This structure ties commercial performance to the delivery of usable computing capacity rather than simply completing the building.
The negotiations therefore represent a significant potential commitment, but not a completed construction contract. The final agreement, funding arrangements and delivery milestones will determine how quickly the proposed facility progresses.
Project Fact Sheet
Name: Proposed second Monarch data center facility.
Type: Artificial intelligence data center and high-performance computing infrastructure.
Location: Nscale’s Monarch data center campus, West Virginia, United States.
Reported potential deal value: Approximately $45 billion.
Proposed capacity: 460 megawatts.
Intended use: Computing capacity for Anthropic’s artificial intelligence models and Claude products.
Proposed technology: Nvidia Vera Rubin AI chips, according to industry reporting.
Power strategy: Reportedly includes an on-site gas-fired power plant.
Project status: Proposed; negotiations remain ongoing, with no final agreement confirmed.
Previous development: A similarly valued agreement for an initial facility at the campus was reported in August 2026.
Potential future expansion: Anthropic reportedly holds a right of first refusal on a possible third building.
Financing and permitting: Final arrangements and approvals have not been confirmed in available reporting.
Project Team
Proposed customer and computing capacity tenant: Anthropic, the developer of Claude artificial intelligence products.
Data center developer and operator: Nscale, a UK-based neocloud and AI infrastructure provider.
Computing hardware supplier: Nvidia, whose Vera Rubin chips feature in reports about the proposed facility.
Power infrastructure: An on-site gas-fired generation arrangement has been reported; the contractor and plant developer remain undisclosed.
Permitting and regulatory authorities: Relevant West Virginia and local authorities have not been individually identified in the available reporting.
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