Nscale Partners with Microsoft on Major AI Infrastructure Deal
▼ Summary
– Nscale signed a deal with Microsoft to deploy approximately 200,000 Nvidia GB300 GPUs across data centers in Europe and the U.S.
– The GPUs will be distributed to four locations: Texas (104,000 units), Portugal (12,600 units), England (23,000 units), and Norway (52,000 units) over the next few years.
– Nscale will operate these deployments through its own operations and a joint venture with investor Aker, building on previous collaborations.
– Founded in 2024, Nscale has raised over $1.7 billion from partners like Aker, Nokia, and Nvidia and is considering an IPO as early as the end of next year.
– The company’s CEO emphasized that this deal positions Nscale as a key partner for large-scale GPU deployments in the AI infrastructure market.
In a landmark move for the artificial intelligence sector, Nscale has entered into a major partnership with Microsoft to deploy nearly 200,000 Nvidia GB300 GPUs across data centers in Europe and the United States. This collaboration marks a significant expansion of AI infrastructure capabilities, positioning Nscale as a key player in the global technology ecosystem.
The ambitious rollout will see these high-performance GPUs distributed through Nscale’s own operations and via a joint venture with Aker, a strategic investor in the company. Approximately 104,000 units are slated for a Texas facility leased by Ionic Digital, with deployment expected over the next 12 to 18 months. Nscale intends to scale its power capacity at this location to an impressive 1.2 gigawatts to support the intensive computational demands.
Further expansion includes 12,600 GPUs destined for the Start Campus data center in Sines, Portugal, beginning in the first quarter of 2026. This initiative builds upon existing plans involving Microsoft and Aker for facilities in Norway and the United Kingdom. Specifically, 23,000 GPUs will be installed at Nscale’s Loughton campus in England starting in 2027, while the remaining 52,000 units will enhance Microsoft’s AI campus in Narvik, Norway.
Josh Payne, founder and CEO of Nscale, emphasized the strategic importance of the agreement. He stated that it solidifies the company’s reputation as a preferred partner for leading technology firms, highlighting Nscale’s unique capability to manage GPU deployments on such a massive scale. Payne pointed to the company’s extensive experience and established global pipeline as critical factors enabling this undertaking.
Despite being founded just this year, Nscale has rapidly ascended in the industry, securing over $1.7 billion in funding from prominent backers such as Aker, Nokia, and Nvidia. Additional investors include Sandton Capital Partners, G Squared, and Point72. Payne revealed in discussions with the Financial Times that the company is considering an initial public offering as early as the end of next year, signaling strong confidence in its growth trajectory.
Payne also underscored the company’s commitment to efficiency and sustainability, noting that the rapid expansion of capacity demonstrates Nscale’s readiness to deliver cutting-edge technology. He believes this partnership sets a new benchmark for how future AI infrastructure will be developed and deployed globally.
This announcement comes amid a flurry of activity in the GPU market. Recently, OpenAI disclosed plans to acquire six gigawatts worth of chips from AMD, and separately secured a deal with Nvidia involving a potential $100 billion investment in exchange for 10 gigawatts of chips. These developments highlight the intensifying competition and substantial investments flowing into AI hardware infrastructure.
(Source: TechCrunch)
