Nscale’s Strategic Expansion with Microsoft and Nvidia

Nscale, a prominent AI hyperscaler startup, has recently signed a substantial agreement with Microsoft, aiming to bolster AI infrastructure with Nvidia hardware across multiple data centers. The deal entails the deployment of approximately 200,000 Nvidia GB300 GPUs to various locations worldwide, signifying a pivotal advancement in AI technology distribution.

The rollout will occur in Europe and the United States, with Nscale’s operations collaborating with Aker, one of its key investors. Notably, 104,000 GPUs are set to be delivered to a Texas-based data center managed by Ionic Digital within the next 12 to 18 months. Additionally, Nscale plans to expand its capacity at this site to 1.2 gigawatts.

Further, Nscale will allocate 12,600 GPUs to the Start Campus data center in Sines, Portugal, beginning in the first quarter of 2026. This initiative aligns with previous collaborations with both Microsoft and Aker, involving projects in Norway and the United Kingdom. Specifically, 23,000 GPUs will be deployed at Nscale’s Loughton, England campus starting in 2027, while 52,000 GPUs will be sent to Microsoft’s AI campus in Narvik, Norway.

Josh Payne, founder and CEO of Nscale, emphasized the company’s strategic position, stating, “This agreement confirms Nscale’s place as a partner of choice for the world’s most important technology leaders.” Despite being founded in 2024, Nscale has rapidly established itself as a formidable player, securing over $1.7 billion in funding from strategic partners, including Aker, Nokia, and Nvidia.

In light of recent developments, Nscale is contemplating an IPO as early as the end of next year. Payne elaborated, “The pace with which we have expanded our capacity demonstrates both our readiness and our commitment to efficiency, sustainability, and providing our customers with the most advanced technology available.”

This announcement comes amid a surge in GPU deals, with OpenAI recently engaging in transactions with AMD and Nvidia. These developments underscore the growing demand for advanced AI infrastructure and the strategic moves by leading companies like Nscale to meet this demand.