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AIP partners with Caterpillar for 2GW AI power
Developer of integrated AI power and compute infrastructure platforms American Intelligence & Power Corporation (AIP), construction equipment manufacturer Caterpillar, and equipment deliverer Boyd CAT have formed a strategic partnership to support the development of AIP’s Monarch Compute Campus in West Virginia, USA.
The agreement includes a purchase arrangement for dedicated onsite power infrastructure, intended to support hyperscale and enterprise data centre requirements. The initial phase will provide up to 2GW of generation capacity, with power delivery beginning in 2026 and full capacity online during 2027.
Under the agreement, AIP has ordered 2GW of fast-response natural gas generator sets to support the first phase of Monarch. Deliveries are scheduled between September 2026 and August 2027.
The generation systems will be supported by battery energy storage systems (BESS), intended to manage rapid load changes associated with AI workloads. The equipment is expected to be commissioned within months of delivery, supporting phased deployment at the site. Further expansion is planned in later phases.
Power platform for AI data centre workloads
The Monarch site is designed as a behind-the-meter power platform, with onsite generation intended to operate independently of incremental utility transmission or distribution infrastructure.
According to the companies, the platform is intended to support rapid load variability, high availability, and predictable long-term operation for AI-driven data centre environments.
Daniel J Shapiro, CEO of AIP, comments, “This strategic alliance reflects a shared commitment to delivering reliable, scalable, and capital-efficient power solutions on an accelerated timeline.
"Our design is purpose-built for AI data centre operations, combining fast-response natural gas generation with battery energy storage to manage rapid load variability and deliver consistent power quality at scale.
"By leveraging our existing microgrid designation from the State of West Virginia, we can bring new capacity online quickly while supporting long-term grid reliability and resilience, without increasing rates or adding costs for existing utility customers.”
Melissa Busen, Senior Vice President of Electric Power at Caterpillar, adds, “This collaboration reflects Caterpillar and our dealers’ continued focus on supporting customers that require primary, continuous-duty power at scale through our broad energy portfolio.
"Projects like Monarch demonstrate how Caterpillar’s natural gas generation platforms are being deployed as core infrastructure for data centres and other power intensive applications where reliability, speed of deployment, and lifecycle performance are critical.”
Generator details
The project will use Caterpillar G3516 fast-response natural gas generator sets, selected for behind-the-meter data centre applications. The generators are designed to support rapid start, load-following operation, and continuous-duty performance.
According to the companies, the systems can ramp from zero to full load in approximately seven seconds, supporting workloads with rapid load fluctuations. The generators will operate on natural gas and incorporate emissions controls, including selective catalytic reduction, to support compliance with relevant air permitting requirements.
The Monarch platform has a stated long-term target of up to 8GW of planned generation capacity. With an existing West Virginia microgrid designation, the site is intended to operate without increasing rates or adding costs for existing utility customers.
In parallel, AIP and Caterpillar have also entered into a strategic alliance framework covering phased expansion planning, operations and maintenance strategy, lifecycle performance, and service and parts support. The agreement also includes vendor equipment financing through Caterpillar Financial, subject to standard terms and conditions and aligned with delivery phasing.
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Joe Peck - 30 January 2026