Nscale inks massive AI infrastructure deal with Microsoft

Nscale, a burgeoning AI hyperscaler startup, has secured a significant partnership with Microsoft aimed at deploying Nvidia AI hardware across several data centers. In a recent announcement, Nscale revealed plans to introduce approximately 200,000 Nvidia GB300 GPUs, targeting three locations in Europe and one in the United States. The ambitious project will see nearly half of these GPUs, specifically 104,000 units, allocated to a data center in Texas leased by Ionic Digital. This deployment is scheduled to unfold over the next 12 to 18 months, with Nscale also aiming to expand its operational capacity at this facility to an impressive 1.2 gigawatts. Additionally, 12,600 GPUs will be dispatched to the Start Campus data center located in Sines, Portugal, commencing in the first quarter of 2026. This initiative builds on earlier collaborations with Microsoft and Aker, focusing on data centers in Norway and the United Kingdom. Nscale plans to transfer 23,000 GPUs to its facility in Loughton, England, starting in 2027, and will send the remaining 52,000 units to Microsoft’s AI campus in Narvik, Norway. Josh Payne, the founder and CEO of Nscale, expressed pride in the agreement, stating, "This confirms Nscale’s position as a preferred partner for leading technology firms. Few companies can manage GPU deployments of this magnitude, but we possess the expertise and have established a robust global pipeline." This statement is particularly noteworthy given Nscale's relatively short history, having been founded in 2024. The startup has already secured over $1.7 billion in funding from strategic partners, including Aker, Nokia, and Nvidia, as well as investments from firms like Sandton Capital Partners, G Squared, and Point72. Payne also indicated that an IPO could be on the horizon by the end of next year. He highlighted the rapid expansion of Nscale’s capacity as a testament to the company's commitment to efficiency, sustainability, and cutting-edge technology. "This is a clear indication that Nscale is redefining how the next generation of AI infrastructure will be rolled out," he added. The surge in GPU deals reflects a growing trend in the industry. Just last week, OpenAI announced a deal to purchase six gigawatts worth of chips from AMD, following a previous arrangement with Nvidia for an investment of up to $100 billion in exchange for 10 gigawatts of chips.