Anthropic signs $45 billion Nscale compute deal for West Virginia data center
This digest was compiled by AI from multiple sources — links to the originals are below.
Anthropic will pay $45 billion to lease 460 megawatts of AI computing capacity from Nscale's Monarch data center campus in West Virginia. Google and Microsoft had also held talks with Nscale for the capacity but walked away, according to a person familiar with the matter. The deal comes as AI companies race to secure compute ahead of Anthropic's planned IPO.
Key Facts
- Anthropic will pay $45 billion for 460 megawatts of capacity in the first of three buildings at Nscale's Monarch campus in West Virginia.
- Google and Microsoft both held talks with Nscale for the same compute capacity before the lease went to Anthropic.
- Microsoft walked away over the summer amid a review of its data center portfolio and on-site power generation share.
- The Google deal fell through due to an internal review of computing needs and capital expenditure management.
- Nscale is preparing for an IPO as soon as next month, while Anthropic has also signed compute deals with Fluidstack for $50 billion and SpaceX for $45 billion.
The Nscale Lease
Anthropic will pay $45 billion to use the first of three buildings at Nscale's planned Monarch campus in West Virginia, covering 460 megawatts. The Monarch campus is aiming to come online next year, and Nscale said the project will be one of the largest compute hubs in the world when finished. London-based Nscale is also said to be prepping for an IPO as soon as next month.
Failed Negotiations
Google and Microsoft were both in talks with Nscale to rent AI computing capacity from the West Virginia project before the lease went to Anthropic. Microsoft walked away over the summer amid a review of its data center portfolio and its share of on-site power generation. The Google deal didn't work out for reasons stemming from an internal review of the tech giant's computing needs and capex management. Microsoft declined to comment, and Google didn't respond to a request for comment.
Compute Market Pressure
Alphabet lifted its 2026 capital expenditure forecast, said 2027 will be even higher, and posted negative free cash flow last quarter as infrastructure investment more than doubled. On Google's earnings call last month, executives noted the company faces supply constraints and is prioritizing frontier AI development on its own custom infrastructure. For Anthropic, the deal unlocks additional future processing power ahead of the company's planned IPO. Anthropic has reached several other major computing deals in recent months, including with Fluidstack for $50 billion and SpaceX for $45 billion.
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Anthropic signs $45 billion Nscale compute deal for West Virginia data center
