Monarch Energy ditches green hydrogen for booming data centre demand
Monarch Energy, founded in 2021, initially aimed to build large-scale green hydrogen production sites across the U.S. But shifting market demands and weak interest from traditional buyers pushed the company to explore a new direction. By 2023, it began focusing on data centres, a sector hungry for power and land.
Ben Alingh launched Monarch Energy with a clear goal: securing land for industrial electrolyzers to produce green hydrogen at scale. The company quickly acquired sites with a combined capacity of four gigawatts, mostly in the Midwest and Gulf Coast, by 2024. However, the green hydrogen market faced hurdles, including delays in tax credit rules and cancelled federal grants for clean energy projects.
Potential buyers, such as oil refiners and ammonia producers, showed little interest in adopting green hydrogen. This lack of demand led Monarch to reconsider its strategy. In 2023, the company turned its attention to data centres, where power needs were rising fast.
Monarch's first move into data centres came through Lancium, the lead developer of Project Stargate's original campus in Abilene, Texas. The company had already requested significant power allocations from utilities in 2022 and 2025, positioning itself well for interconnection. About half of its powered land portfolio now suits hyperscale data centre requirements, while the rest remains too risky due to storm surge and hurricane exposure.
Monarch isn't alone in this shift. Major developers like Intersect Power and AES have also moved away from green hydrogen, repurposing land for data centres instead.
Monarch Energy's transition reflects broader industry trends, as companies adapt to changing energy demands. With its sites already secured and power requests in place, the company is now better aligned with the growing data centre market. The move highlights how energy firms are adjusting strategies to meet evolving economic priorities.
