Nscale Anthropic Deal Advances on Second $45 Billion Compute Agreement in West Virginia

Nscale and Anthropic are in advanced talks for a second roughly $45 billion agreement that would secure another 460 MW of AI compute capacity at the Monarch Compute Campus in Mason County, West Virginia. The discussions, reported between October 19 and 20, 2026, center on delivery of Nvidia Vera Rubin chips starting in 2028. Due diligence continues and a final signing could occur within days or weeks, though terms remain subject to change.

Details of the Proposed Second Agreement

The new arrangement would mirror the structure of the first contract signed in August 2026. Anthropic would commit approximately $7.5 billion per year over six years in exchange for dedicated capacity on a second building at the same site. The company would also receive a right of first refusal on a planned third building. Both parties have kept public comments limited, with no official confirmation issued as of October 24, 2026.

Power for the expanded capacity would come from on-site natural gas microgrids using Caterpillar generation units. Closed-loop cooling systems are planned to reduce water consumption. The second building would bring total contracted capacity under the two deals to 920 MW, representing a significant portion of Phase 1 targets at the 2,250-acre site.

Financing for the first contract and air and water permits for the gas plant remain in process. Construction of civil works is already underway, with vertical construction expected to begin shortly. Capacity from the initial agreement is scheduled to come online in late 2027.

Background on the Monarch Campus and Prior Commitments

Nscale acquired the Mason County site in March 2026. The UK-based, Nvidia-backed company aims to reach 1.35 to 2 GW of computing capacity by the first half of 2028, with long-term potential exceeding 8 GW. Microsoft had previously held capacity commitments at the location but withdrew from at least one project over power availability concerns.

The first $45 billion agreement, announced in August 2026, covers 460 MW and uses the same Vera Rubin architecture. Nscale’s S-1 filing disclosed existing Anthropic contracts worth up to $44.6 billion, subject to delivery milestones. Combined with other customer commitments, the company’s total contracted value now exceeds $103 billion ahead of its planned NYSE listing under the ticker NSCL.

West Virginia Governor Patrick Morrisey described the initial deal in August 2026 as an extraordinary vote of confidence in the state’s AI and energy strategy. He highlighted regulatory certainty around microgrids, ratepayer protections, and a revenue-sharing plan that directs 50 percent of microgrid income toward eliminating the state income tax.

Implications for AI Infrastructure Expansion

Anthropic is scaling compute resources to meet rising demand for its Claude models ahead of expected IPO preparations. The additional capacity at Monarch would support training and inference workloads that require sustained high-density GPU clusters. On-site generation reduces reliance on strained regional grids and provides greater control over power costs and availability.

Local opposition has emerged over environmental impacts, including plans to relocate an American chestnut orchard in winter 2027. Nscale continues to address permitting requirements while maintaining its construction timeline. Investors evaluating Nscale’s IPO have pushed for a valuation near $30 billion, though some have argued for a lower figure given execution risks around power and permits.

For enterprise users and investors, the expanding Nscale-Anthropic relationship signals continued growth in dedicated AI infrastructure outside traditional hyperscale footprints. Delivery timelines remain dependent on chip supply, financing closure, and final regulatory approvals.