Full Breakdown
Nscale and Anthropic Negotiate a Second $45 Billion AI-Compute Deal for West Virginia Campus
By Drooid · · How we work
The Pending Agreement
On October 19, sources told Reuters that Nscale Ltd., the Nvidia-backed AI data-center developer, entered fresh talks with Anthropic PBC to supply roughly $45 billion in additional AI-computing capacity. The prospective contract would cover a second building at Nscale’s Monarch campus in Mason County, West Virginia, delivering about 460 megawatts of power using Nvidia’s next-generation Vera Rubin AI chips. Anthropic already holds a right of first refusal on a planned third Monarch facility.
Background & Context
Earlier this year, Anthropic signed a comparable $45 billion agreement to rent compute power from the first Monarch building, reflected in Nscale’s IPO filing as “up to $44.6 billion” of contracted value. The partnership makes Anthropic one of Nscale’s largest customers, alongside Microsoft, which withdrew after grid-connection delays pushed the expected supply date into the 2030s. Nscale’s growth—from $100 million in contracts at launch to more than $103 billion in two-and-a-half years—has positioned the firm for a U.S. listing targeting a valuation of about $30 billion.
Data & Statistics
- Deal size: Approximately $45 billion for the second Monarch building; combined with the existing contract, total reported value could approach $90 billion.
- Power capacity: 460 MW for the new facility; the Monarch campus is designed to scale to over 8 GW when fully built out.
- Funding: Nscale raised $3.36 billion in a pre-IPO financing round led by Third Point, with participation from Nvidia, Apollo Global Management, Citadel, Hudson Bay Capital and the Abu Dhabi Investment Council.
Official Statements & Responses
Nscale has not provided comment on the specific negotiations. — Firm Nscale
Anthropic declined to comment to Reuters regarding the latest talks.
Criticism & Opposition
Investor groups have pressed Anthropic to reduce its IPO valuation, arguing that the scale of infrastructure commitments—multiple multibillion-dollar contracts with providers such as Fluidstack, Volta Infrastructure and SpaceX—may be difficult to justify given the debt-heavy financing model common among AI-infrastructure firms. Similar sentiment has been echoed toward Nscale, where some stakeholders view the $30 billion valuation as overly optimistic in light of SEC comments on the company’s filing and recent net losses reported for the first half of 2026.
Conflicting Reports & Gaps
All sources agree on the core terms of the prospective deal (value, power capacity, chip technology). However, the exact timing for finalizing the agreement and the final contractual language remain unspecified, with reports noting that “details could change” and that a deal could be signed “within days.” No independent verification of the negotiations has been provided.
Verbatim Quotes
- “We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK,” — Firm Nscale
What’s Next
Nscale’s SEC filing indicates the company is still addressing regulator comments before commencing a formal roadshow for its U.S. IPO. The outcome of the Anthropic talks, together with the firm’s ability to secure financing for the expanded Monarch campus, will be pivotal for the upcoming listing process. Anthropic’s own IPO is expected in the coming months, and its continued procurement of compute capacity will be a key metric for investors.