AIP Corp. Turns to Caterpillar for Power Solutions
American Intelligence & Power Corporation (“AIP Corp”), Caterpillar Inc. (NYSE: CAT), and Boyd CAT on Jan. 28 announced a strategic alliance and the execution of a purchase agreement supporting the development of AIP Corp’s flagship site, the Monarch Compute Campus (“Monarch”), a large-scale, multi-phase power generation and infrastructure platform designed to deliver long-term, high-reliability power solutions to hyperscale and enterprise data center customers.
Power delivery begins in 2026 with 2 gigawatts (GW) online in 2027
Under the purchase agreement, AIP Corp has ordered 2 GW of fast-response natural gas generator sets to support the initial phase of Monarch, with deliveries scheduled from September 2026 through August 2027. The fast-response generation equipment will be augmented with battery energy storage systems designed to handle the extreme load swings of AI data centers. The Caterpillar equipment and battery systems are expected to be commissioned and ready to deliver power within months of equipment delivery, supporting Monarch’s accelerated time-to-market strategy to meet rapidly growing power demand from data centers. This 2-GW order supports Monarch’s initial phases, with additional phased expansion planned over time.
“This strategic alliance reflects a shared commitment to delivering reliable, scalable, and capital-efficient power solutions on an accelerated timeline,” said Daniel J. Shapiro, CEO of American Intelligence & Power Corp. “Our design is purpose-built for AI data center 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.”
“This collaboration reflects Caterpillar and our dealers’ continued focus on supporting customers that require primary, continuous-duty power at scale through our broad energy solutions portfolio,” said Melissa Busen, senior vice president of Electric Power, Caterpillar. “Projects like Monarch demonstrate how Caterpillar’s natural gas generation platforms are being deployed as core infrastructure for data centers and other power intensive applications where reliability, speed of deployment, and lifecycle performance are critical.”
“Our customers depend on us for reliability, responsiveness and deep technical support, and this project is a powerful example of that commitment,” said Andrew Boyd, president & CEO of Boyd CAT. “The scale of the Monarch project demands precision and performance, and Boyd CAT is ready to deliver both as AIP Corp brings new generation capacity online.”
The Caterpillar G3516 fast-response natural gas generator sets are well-suited for behind-the-meter data center applications due to rapid start capability, load-following performance, and high reliability in continuous-duty operation. The G3516 platform can ramp from zero to full load in approximately seven seconds, supporting AI-driven workloads characterized by rapid load fluctuations and stringent power quality requirements. The gensets will operate on natural gas and incorporate advanced emissions controls, including selective catalytic reduction (SCR), to support ultra-low emissions performance and compliance with all relevant air permitting requirements.
No impact to existing utility customers
Monarch will use advanced monitoring and control systems to support high availability, operational resilience, and predictable lifecycle performance. Designed as a fully self-supplied, behind-the-meter power platform, Monarch generates power onsite and does not require incremental utility transmission or distribution infrastructure to serve its load. With a target of 8 GW of planned generation capacity and an existing West Virginia microgrid designation, Monarch is designed to not increase rates or add costs for existing utility customers and will support long-term grid reliability and resilience.
Prioritizing efficiency, service, and vendor financing
In parallel with the purchase agreement, AIP Corp and Caterpillar have entered into a strategic alliance agreement establishing a streamlined framework for collaboration focused on equipment optimization, phased expansion planning, operations and maintenance strategy, and long-term lifecycle performance, including service readiness and parts support planning. The alliance also includes vendor equipment financing through Caterpillar Financial, subject to customary terms and conditions, and aligned with equipment delivery phasing to support efficient project execution.
