Nvidia-Backed Nscale Plans Huge Data Center Cluster in West Virginia -- WSJ

Dow Jones04:51

By Robbie Whelan

Cloud computing startup Nscale has acquired American Intelligence & Power, the owner of a 2,250-acre data center campus in West Virginia, with plans of building up to 8 gigawatts' worth of computing power there, the company said Monday.

Backed by Nvidia, U.K.-based Nscale is one of the largest of the new class of companies known as neo-clouds, which buy thousands of artificial intelligence processors, install them in data center servers, and lease the use of those processors to hyperscalers and AI developers. Acquisition talks were earlier reported by The Information.

Microsoft is the client of the West Virginia site, which is officially known as the Monarch Compute Campus. Nscale has signed a letter of intent with the tech giant to provide it with up to 1.35 gigawatts worth of computing power, or roughly twice the amount of electricity used by the city of Philadelphia in a year, using Nvidia's latest generation of AI servers.

Nscale plans to begin installing thousands of Nvidia's Vera Rubin NVL72 servers in late 2027. The company describes the deployment as one of the largest AI computing installations in the world.

The neocloud recently raised $2 billion from investors including Nvidia, Dell Technologies and Nokia in a funding round that values the company at $14.6 billion. It also added former Facebook executives Sheryl Sandberg and Nick Clegg to its board, as well as former Yahoo executive Susan Decker. Nvidia owns roughly 10% of Nscale.

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March 16, 2026 16:51 ET (20:51 GMT)

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