nScale AI Infrastructure Deal with Microsoft | Latest News

Nscale and Microsoft Partner to Expand Nvidia GPU Capacity

Nscale, a rapidly growing AI hyperscaler, has secured a significant agreement with Microsoft to deploy advanced Nvidia AI hardware across multiple data center locations.

GPU Deployment Details

The AI cloud provider revealed on Wednesday a deal to integrate roughly 200,000 Nvidia GB300 GPUs into three European data centers and one facility within the United States.

Delivery of these GPUs will be managed through Nscale’s independently operated infrastructure, as well as a collaborative venture with Aker, a key investor in the company.

Data Center Locations and Timelines

Approximately half of the GPUs – 104,000 units – are slated for a data center in Texas, leased from Ionic Digital. Deployment at this location is expected to occur over the next 12 to 18 months.

Nscale intends to expand its presence at the Texas facility to a capacity of 1.2 gigawatts, according to company statements.

Furthermore, 12,600 GPUs will be deployed to the Start Campus data center in Sines, Portugal, beginning in the first quarter of 2026.

Expanding Existing Partnerships

This new agreement complements existing collaborations with both Microsoft and Aker concerning data centers in Norway and the United Kingdom.

Nscale will allocate 23,000 GPUs to its Loughton, England campus, starting in 2027. The remaining 52,000 GPUs will be sent to Microsoft’s AI campus in Narvik, Norway.

Executive Statement

“This agreement confirms Nscale’s position as a preferred partner for leading technology companies globally,” stated Josh Payne, founder and CEO of Nscale, in a press release.

“Delivering GPU deployments at this scale requires specialized capabilities, and we possess the necessary experience and a robust global pipeline to achieve this.”

Company Growth and Future Plans

Payne’s assertion is noteworthy given Nscale’s recent founding in 2024. Since its inception, the company has successfully raised over $1.7 billion from strategic partners, including Aker, Nokia, and Nvidia.

Additional investors include Sandton Capital Partners, G Squared, and Point72. Payne indicated to the Financial Times that an Initial Public Offering (IPO) is being considered as early as the end of the following year.

“The speed of our capacity expansion underscores our preparedness and dedication to efficiency, sustainability, and providing customers with cutting-edge technology,” Payne added in the release.

“This demonstrates that Nscale is establishing a new benchmark for the delivery of next-generation AI infrastructure.”

Industry Trends

Recent weeks have seen an increase in GPU-related deals. OpenAI announced a purchase of six gigawatts’ worth of chips from AMD last week.

Previously, in September, OpenAI finalized an agreement with Nvidia, where Nvidia will invest up to $100 billion in exchange for 10 gigawatts’ worth of chips.