Capstone Green Energy has signed a Memorandum of Understanding (MOU) with Microgrids 4 AI (MG4AI) to partner on the development of modular AI-ready microgrid-powered data centers.

Under the agreement, MG4AI will combine its containerized compute pods with Capstone’s microturbines and combined cooling and power systems.

The microturbines can be powered by several fuels, including natural gas, biogas, and LPG/propane. The company offers a range of microturbine options, ranging from 5kW to 1MW per unit. The units can be paralleled and scaled to a maximum of 30MW.

MG4AI designs modular, turnkey Edge data centers under 20MW, aimed at enterprises, sovereign customers, and organizations needing GPU-intensive compute environments. Its approach integrates grid-independent microgrids with liquid cooling to reduce reliance on utility connections, accelerate deployment, and improve resilience.

“Capstone’s advanced distributed power platform is purpose-built for the next wave of digital infrastructure,” said Vince Canino, president and CEO of Capstone Green Energy. “Artificial intelligence is one of the most energy-intensive applications and disruptive workloads of our time. By aligning Capstone’s technology with MG4AI’s modular compute architecture, we are setting a new standard for speed, efficiency, and sustainability in AI infrastructure deployments.”

Through the partnership, the companies aim to integrate the two systems, which they claim will permit the rapid deployment of AI-ready infrastructure with reduced cooling and energy costs.

MG4AI CEO Ken Kajikawa stated: “The future of AI will not be built on yesterday’s data centers. It demands innovative new infrastructure – where power, liquid cooling, and compute converge as one, a complete kit. Together with Capstone, MG4AI is creating a new blueprint for AI: sovereign, sustainable, and infinitely scalable. We’re not just keeping pace with the AI revolution; we’re building the new foundation that makes next-generation AI infrastructure possible.”

Based in Van Nuys, California, Capstone is a manufacturer of gas turbines. According to the company, it has shipped more than 10,600 microturbine units to 88 countries over the past four decades. The company stated that the deal with MG4AI reflects its strategy to expand into modular, AI-focused deployments as demand for high-performance computing grows.

MG4AI was founded this year and is based in Redwood, California. The company claims to manage the full lifecycle of microgrid buildouts for Edge data centers, including engineering, design, permitting, vendor coordination, and deployment, with delivery timelines as fast as 12 months. Its co-founder and CEO, Kajikawa, is a veteran of Supermicro, Micron, and Dell.