Microsoft Signs Lease for Off-Grid Gas-Powered Data Center in West Virginia

Microsoft has signed a lease for up to 1.35GW of AI computing capacity at the Monarch Compute Campus in West Virginia, an off-grid data center powered entirely by natural gas. This facility, touted as the first state-certified AI microgrid in the U.S., may result in a 40% increase in Microsoft's data center emissions, although the company emphasizes its commitment to enhancing AI capacity and supporting community electricity reliability while pursuing decarbonization.

Published Mar 20, 2026

Microsoft signed a letter of intent to lease up to 1.35GW of AI computing capacity at the Monarch Compute Campus in West Virginia, an off-grid data center powered entirely by natural gas. The facility is promoted by Nscale as the first state-certified AI microgrid in the United States.

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An analysis suggests that this project may lead to a 40% increase in Microsoft's data center emissions. Microsoft did not address this estimate directly but stated that the initiative aims to enhance AI capacity and support community electricity reliability while pursuing decarbonization.