diff --git a/moto/batch/exceptions.py b/moto/batch/exceptions.py
index e598ee7af..cd6031a95 100644
--- a/moto/batch/exceptions.py
+++ b/moto/batch/exceptions.py
@@ -1,3 +1,32 @@
 from __future__ import unicode_literals
-from moto.core.exceptions import RESTError
+import json
 
+
+class AWSError(Exception):
+    CODE = None
+    STATUS = 400
+
+    def __init__(self, message, code=None, status=None):
+        self.message = message
+        self.code = code if code is not None else self.CODE
+        self.status = status if status is not None else self.STATUS
+
+    def response(self):
+        return json.dumps({'__type': self.code, 'message': self.message}), dict(status=self.status)
+
+
+class InvalidRequestException(AWSError):
+    CODE = 'InvalidRequestException'
+
+
+class InvalidParameterValueException(AWSError):
+    CODE = 'InvalidParameterValue'
+
+
+class ValidationError(AWSError):
+    CODE = 'ValidationError'
+
+
+class InternalFailure(AWSError):
+    CODE = 'InternalFailure'
+    STATUS = 500
diff --git a/moto/batch/models.py b/moto/batch/models.py
index a54b30c32..c7def48d1 100644
--- a/moto/batch/models.py
+++ b/moto/batch/models.py
@@ -1,6 +1,28 @@
 from __future__ import unicode_literals
 import boto3
+import re
 from moto.core import BaseBackend, BaseModel
+from moto.iam import iam_backends
+from moto.ec2 import ec2_backends
+
+from .exceptions import InvalidParameterValueException, InternalFailure
+from .utils import make_arn_for_compute_env
+from moto.ec2.exceptions import InvalidSubnetIdError
+from moto.iam.exceptions import IAMNotFoundException
+
+
+DEFAULT_ACCOUNT_ID = 123456789012
+COMPUTE_ENVIRONMENT_NAME_REGEX = re.compile(r'^[A-Za-z0-9_]{1,128}$')
+
+
+class ComputeEnvironment(BaseModel):
+    def __init__(self, compute_environment_name, _type, state, compute_resources, service_role, region_name):
+        self.compute_environment_name = compute_environment_name
+        self.type = _type
+        self.state = state
+        self.compute_resources = compute_resources
+        self.service_role = service_role
+        self.arn = make_arn_for_compute_env(DEFAULT_ACCOUNT_ID, compute_environment_name, region_name)
 
 
 class BatchBackend(BaseBackend):
@@ -8,16 +30,125 @@ class BatchBackend(BaseBackend):
         super(BatchBackend, self).__init__()
         self.region_name = region_name
 
+        self._compute_environments = {}
+
+    @property
+    def iam_backend(self):
+        """
+        :return: IAM Backend
+        :rtype: moto.iam.models.IAMBackend
+        """
+        return iam_backends['global']
+
+    @property
+    def ec2_backend(self):
+        """
+        :return: EC2 Backend
+        :rtype: moto.ec2.models.EC2Backend
+        """
+        return ec2_backends[self.region_name]
+
     def reset(self):
         region_name = self.region_name
         self.__dict__ = {}
         self.__init__(region_name)
 
-    def create_compute_environment(self, compute_environment_name, type, state, compute_resources, service_role):
-        # implement here
-        return compute_environment_name, compute_environment_arn
-    # add methods from here
+    def get_compute_environment(self, arn):
+        return self._compute_environments.get(arn)
+
+    def get_compute_environment_by_name(self, name):
+        for comp_env in self._compute_environments.values():
+            if comp_env.name == name:
+                return comp_env
+        return None
+
+    def create_compute_environment(self, compute_environment_name, _type, state, compute_resources, service_role):
+        # Validate
+        if COMPUTE_ENVIRONMENT_NAME_REGEX.match(compute_environment_name) is None:
+            raise InvalidParameterValueException('Compute environment name does not match ^[A-Za-z0-9_]{1,128}$')
+
+        if self.get_compute_environment_by_name(compute_environment_name) is not None:
+            raise InvalidParameterValueException('A compute environment already exists with the name {0}'.format(compute_environment_name))
+
+        # Look for IAM role
+        try:
+            self.iam_backend.get_role_by_arn(service_role)
+        except IAMNotFoundException:
+            raise InvalidParameterValueException('Could not find IAM role {0}'.format(service_role))
+
+        if _type not in ('MANAGED', 'UNMANAGED'):
+            raise InvalidParameterValueException('type {0} must be one of MANAGED | UNMANAGED'.format(service_role))
+
+        if state is not None and state not in ('ENABLED', 'DISABLED'):
+            raise InvalidParameterValueException('state {0} must be one of ENABLED | DISABLED'.format(state))
+
+        if compute_resources is None and _type == 'MANAGED':
+            raise InvalidParameterValueException('computeResources must be specified when creating a MANAGED environment'.format(state))
+        elif compute_resources is not None:
+            self._validate_compute_resources(compute_resources)
+
+        # By here, all values except SPOT ones have been validated
+        new_comp_env = ComputeEnvironment(
+            compute_environment_name, _type, state,
+            compute_resources, service_role,
+            region_name=self.region_name
+        )
+        self._compute_environments[new_comp_env.arn] = new_comp_env
+
+        # TODO scale out if MANAGED and we have compute instance types
+
+        return compute_environment_name, new_comp_env.arn
+
+    def _validate_compute_resources(self, cr):
+        if 'instanceRole' not in cr:
+            raise InvalidParameterValueException('computeResources must contain instanceRole')
+        elif self.iam_backend.get_role_by_arn(cr['instanceRole']) is None:
+            raise InvalidParameterValueException('could not find instanceRole {0}'.format(cr['instanceRole']))
+
+        # TODO move the not in checks to a loop, or create a json schema validator class
+        if 'maxvCpus' not in cr:
+            raise InvalidParameterValueException('computeResources must contain maxVCpus')
+        if 'minvCpus' not in cr:
+            raise InvalidParameterValueException('computeResources must contain minVCpus')
+        if cr['maxvCpus'] < 0:
+            raise InvalidParameterValueException('maxVCpus must be positive')
+        if cr['minvCpus'] < 0:
+            raise InvalidParameterValueException('minVCpus must be positive')
+        if cr['maxvCpus'] < cr['minvCpus']:
+            raise InvalidParameterValueException('maxVCpus must be greater than minvCpus')
+
+        # TODO check instance types when that logic exists
+        if 'instanceTypes' not in cr:
+            raise InvalidParameterValueException('computeResources must contain instanceTypes')
+        if len(cr['instanceTypes']) == 0:
+            raise InvalidParameterValueException('At least 1 instance type must be provided')
+
+        if 'securityGroupIds' not in cr:
+            raise InvalidParameterValueException('computeResources must contain securityGroupIds')
+        for sec_id in cr['securityGroupIds']:
+            if self.ec2_backend.get_security_group_from_id(sec_id) is None:
+                raise InvalidParameterValueException('security group {0} does not exist'.format(sec_id))
+        if len(cr['securityGroupIds']) == 0:
+            raise InvalidParameterValueException('At least 1 security group must be provided')
+
+        if 'subnets' not in cr:
+            raise InvalidParameterValueException('computeResources must contain subnets')
+        for subnet_id in cr['subnets']:
+            try:
+                self.ec2_backend.get_subnet(subnet_id)
+            except InvalidSubnetIdError:
+                raise InvalidParameterValueException('subnet {0} does not exist'.format(subnet_id))
+        if len(cr['subnets']) == 0:
+            raise InvalidParameterValueException('At least 1 subnet must be provided')
+
+        if 'type' not in cr:
+            raise InvalidParameterValueException('computeResources must contain type')
+        if cr['type'] not in ('EC2', 'SPOT'):
+            raise InvalidParameterValueException('computeResources.type must be either EC2 | SPOT')
+
+        if cr['type'] == 'SPOT':
+            raise InternalFailure('SPOT NOT SUPPORTED YET')
 
 
 available_regions = boto3.session.Session().get_available_regions("batch")
-batch_backends = {region: BatchBackend for region in available_regions}
+batch_backends = {region: BatchBackend(region_name=region) for region in available_regions}
diff --git a/moto/batch/responses.py b/moto/batch/responses.py
index d91af8a77..0368906f0 100644
--- a/moto/batch/responses.py
+++ b/moto/batch/responses.py
@@ -1,14 +1,58 @@
 from __future__ import unicode_literals
 from moto.core.responses import BaseResponse
 from .models import batch_backends
+from six.moves.urllib.parse import urlsplit
+
+from .exceptions import AWSError
+
+import json
 
 
 class BatchResponse(BaseResponse):
+    def _error(self, code, message):
+        return json.dumps({'__type': code, 'message': message}), dict(status=400)
+
     @property
     def batch_backend(self):
         return batch_backends[self.region]
 
-    # add methods from here
+    @property
+    def json(self):
+        if not hasattr(self, '_json'):
+            self._json = json.loads(self.body)
+        return self._json
 
+    def _get_param(self, param_name, if_none=None):
+        val = self.json.get(param_name)
+        if val is not None:
+            return val
+        return if_none
 
-# add teampltes from here
+    def _get_action(self):
+        # Return element after the /v1/*
+        return urlsplit(self.uri).path.lstrip('/').split('/')[1]
+
+    # CreateComputeEnvironment
+    def createcomputeenvironment(self):
+        compute_env_name = self._get_param('computeEnvironmentName')
+        compute_resource = self._get_param('computeResources')
+        service_role = self._get_param('serviceRole')
+        state = self._get_param('state')
+        _type = self._get_param('type')
+
+        try:
+            name, arn = self.batch_backend.create_compute_environment(
+                compute_environment_name=compute_env_name,
+                _type=_type, state=state,
+                compute_resources=compute_resource,
+                service_role=service_role
+            )
+        except AWSError as err:
+            return err.response()
+
+        result = {
+            'computeEnvironmentArn': arn,
+            'computeEnvironmentName': name
+        }
+
+        return json.dumps(result)
diff --git a/moto/batch/urls.py b/moto/batch/urls.py
index 27cd9fc51..93f8a2f23 100644
--- a/moto/batch/urls.py
+++ b/moto/batch/urls.py
@@ -6,5 +6,5 @@ url_bases = [
 ]
 
 url_paths = {
-    '{0}/$': BatchResponse.dispatch,
+    '{0}/v1/createcomputeenvironment': BatchResponse.dispatch,
 }
diff --git a/moto/batch/utils.py b/moto/batch/utils.py
index 33e474d61..d323a9bf7 100644
--- a/moto/batch/utils.py
+++ b/moto/batch/utils.py
@@ -1,6 +1,5 @@
 from __future__ import unicode_literals
-import uuid
 
 
-def make_arn_for_topic(account_id, name, region_name):
-    return "arn:aws:sns:{0}:{1}:{2}".format(region_name, account_id, name)
+def make_arn_for_compute_env(account_id, name, region_name):
+    return "arn:aws:batch:{0}:{1}:compute-environment/{2}".format(region_name, account_id, name)
diff --git a/moto/iam/models.py b/moto/iam/models.py
index a7e584284..34efb1a22 100644
--- a/moto/iam/models.py
+++ b/moto/iam/models.py
@@ -534,6 +534,12 @@ class IAMBackend(BaseBackend):
                 return role
         raise IAMNotFoundException("Role {0} not found".format(role_name))
 
+    def get_role_by_arn(self, arn):
+        for role in self.get_roles():
+            if role.arn == arn:
+                return role
+        raise IAMNotFoundException("Role {0} not found".format(arn))
+
     def delete_role(self, role_name):
         for role in self.get_roles():
             if role.name == role_name:
diff --git a/tests/test_batch/test_batch.py b/tests/test_batch/test_batch.py
index eafd32eae..3aae48e1e 100644
--- a/tests/test_batch/test_batch.py
+++ b/tests/test_batch/test_batch.py
@@ -2,10 +2,87 @@ from __future__ import unicode_literals
 
 import boto3
 import sure  # noqa
-from moto import mock_batch
+from moto import mock_batch, mock_iam, mock_ec2
 
 
+DEFAULT_REGION = 'eu-central-1'
+
+
+def _get_clients():
+    return boto3.client('ec2', region_name=DEFAULT_REGION), \
+           boto3.client('iam', region_name=DEFAULT_REGION), \
+           boto3.client('batch', region_name=DEFAULT_REGION)
+
+
+def _setup(ec2_client, iam_client):
+    """
+    Do prerequisite setup
+    :return: VPC ID, Subnet ID, Security group ID, IAM Role ARN
+    :rtype: tuple
+    """
+    resp = ec2_client.create_vpc(CidrBlock='172.30.0.0/24')
+    vpc_id = resp['Vpc']['VpcId']
+    resp = ec2_client.create_subnet(
+        AvailabilityZone='eu-central-1a',
+        CidrBlock='172.30.0.0/25',
+        VpcId=vpc_id
+    )
+    subnet_id = resp['Subnet']['SubnetId']
+    resp = ec2_client.create_security_group(
+        Description='test_sg_desc',
+        GroupName='test_sg',
+        VpcId=vpc_id
+    )
+    sg_id = resp['GroupId']
+
+    resp = iam_client.create_role(
+        RoleName='TestRole',
+        AssumeRolePolicyDocument='some_policy'
+    )
+    iam_arn = resp['Role']['Arn']
+
+    return vpc_id, subnet_id, sg_id, iam_arn
+
+
+# Yes, yes it talks to all the things
+@mock_ec2
+@mock_iam
 @mock_batch
-def test_list():
-    # do test
-    pass
\ No newline at end of file
+def test_create_compute_environment():
+    ec2_client, iam_client, batch_client = _get_clients()
+    vpc_id, subnet_id, sg_id, iam_arn = _setup(ec2_client, iam_client)
+
+    compute_name = 'test_compute_env'
+    resp = batch_client.create_compute_environment(
+        computeEnvironmentName=compute_name,
+        type='MANAGED',
+        state='ENABLED',
+        computeResources={
+            'type': 'EC2',
+            'minvCpus': 123,
+            'maxvCpus': 123,
+            'desiredvCpus': 123,
+            'instanceTypes': [
+                'some_instance_type',
+            ],
+            'imageId': 'some_image_id',
+            'subnets': [
+                subnet_id,
+            ],
+            'securityGroupIds': [
+                sg_id,
+            ],
+            'ec2KeyPair': 'string',
+            'instanceRole': iam_arn,
+            'tags': {
+                'string': 'string'
+            },
+            'bidPercentage': 123,
+            'spotIamFleetRole': 'string'
+        },
+        serviceRole=iam_arn
+    )
+    resp.should.contain('computeEnvironmentArn')
+    resp['computeEnvironmentName'].should.equal(compute_name)
+
+# TODO create 1000s of tests to test complex option combinations of create environment