TLDR
- Nscale secured a $14 billion contract with Microsoft to provide 200,000 Nvidia AI chips for data centers in the US and Europe
- The deal includes 104,000 GB300 chips for Texas and 12,600 GPUs for Portugal, with deployment starting in 2026
- The UK company raised $1.1 billion in September and holds a $3 billion valuation with backing from Aker, Nokia, Nvidia, and Dell
- Nscale plans a late 2026 IPO and is investing up to Ā£2.5 billion in UK data center infrastructure
- This agreement adds to an existing $6.2 billion deal for 52,000 GPUs at Nscale’s Norway facility
British AI infrastructure provider Nscale has secured a $14 billion agreement with Microsoft to deploy approximately 200,000 Nvidia chips across multiple data centers. The deal represents one of the largest AI infrastructure contracts announced in 2025.
Dell Technologies will collaborate with Nscale on executing the deployment. Chip deliveries will begin next year at facilities in Texas and Portugal.
The Texas data center will receive around 104,000 of Nvidia’s GB300 chips over a 12 to 18 month period. Nscale’s Start Campus location in Portugal will receive an additional 12,600 GPUs during the same timeframe.
This contract expands an existing partnership between the two companies. Nscale’s joint venture with Norwegian energy company Aker previously signed a deal to supply 52,000 Nvidia GPUs from its Narvik, Norway campus. That agreement was valued at $6.2 billion.
Rapid Growth and Major Backing
Nscale has transformed quickly since spinning out from an Australian Bitcoin mining operation just over a year ago. The company completed a $1.1 billion funding round in September with investments from Aker and Nokia.
That financing gave Nscale a valuation of approximately $3 billion. The company’s investor base includes Nvidia, Dell, Fidelity, and other major technology and financial firms.
Nvidia has previously referred to Nscale as a potential national champion for UK AI infrastructure. The chip manufacturer supplies the GPUs and holds a financial stake in the company.
UK Investment and IPO Plans
Nscale has pledged between Ā£2 billion and Ā£2.5 billion for data center development in the United Kingdom. The company’s first UK greenfield project is planned for Loughton, Essex.
The Essex facility will provide 50 megawatts of AI computing capacity with the ability to scale to 90 megawatts. The site will house tens of thousands of GPUs and is scheduled to become operational in the fourth quarter of 2026.
Chief executive Josh Payne has stated the company targets a public listing by late 2026. The IPO timeline depends on meeting construction schedules and chip delivery commitments.
Execution Challenges
Nscale has not yet finished building a greenfield facility from the ground up. The company’s track record centers on securing large GPU contracts, binding agreements, and site acquisitions.
Several factors could affect the company’s expansion plans. Building large data centers requires regulatory approvals, environmental permits, and land use permissions across different regions.
Power supply presents a key challenge for AI data center operations. These facilities require substantial electricity, making renewable and cost-effective energy sources increasingly important to clients and regulators.
Supply chain logistics could impact delivery schedules. Getting hundreds of thousands of GPUs delivered on time depends on Nvidia’s manufacturing capacity and global shipping conditions.
The Microsoft partnership demonstrates continued investment by major technology companies in physical AI infrastructure. Microsoft’s deal positions Nscale as a key supplier for its cloud and AI operations as global demand for GPU computing increases.
Nscale will begin chip deliveries to Microsoft’s Texas and Portugal facilities starting in 2026, with the Norway campus already under contract for separate GPU deployment.
