Nscale Eyes $3B IPO Next Month as AI Data Center Demand Surges With $51B in Contracted Revenue

AI data center builder Nscale reportedly seeking $3B IPO

Nscale Global Holdings Ltd reportedly plans to raise $3 billion in an initial public offering that could take place as soon as next month. Bloomberg today cited sources as saying that the London-based company intends to list its shares on a U.S. stock exchange. According to the report, it has hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. to manage the IPO. The tipsters didn't specify the valuation that Nscale is targeting. The company, which builds and operates artificial intelligence data centers, received a $14.6 billion valuation following its most recent funding round. The March raise included the participation of Nvidia Corp., Nokia Corp. and other high-profile backers. Nscale opened its first data center last year in Norway. Today, the company is building AI infrastructure in more than a dozen locations worldwide. Bloomberg reported that Nscale hopes to grow its data center capacity from 831 megawatts to about 11 gigawatts. The company's flagship project is a 2,250-acre data center campus in West Virginia. Nscale estimates that the site can theoretically accommodate more than eight gigawatts of computing capacity. It will host a dedicated electrical grid with on-site power generation infrastructure. The campus' anchor tenant is Microsoft Corp., which commissioned 1.35 gigawatts of capacity from Nscale in March. The latter company will deliver that processing power using Nvidia's Vera Rubin NVL72 systems. Each appliance features 72 of the chipmaker's latest Rubin graphics processing units. Nscale will also host 300,000 previous-generation Blackwell Ultra chips for Microsoft in four other locations. The GPUs are part of an infrastructure contract reportedly worth $14 billion. Bloomberg's sources stated that Nscale's total contracted revenue, or the value of its data center contracts with customers, is about $51 billion. The company offers not only GPUs but also cloud services that make its hardware easier to use. Nscale provides managed versions of the Kubernetes and Slurm frameworks, which help lower AI workloads' infrastructure usage. Additionally, the company offers a prompt engineering tool that helps developers boost the quality of model responses. Last month, Nscale expanded its software portfolio by acquiring startup Anyscale Inc. for $1.65 billion. The deal bought it a commercial version of Ray, an open-source tool that helps optimize AI clusters. Anyscale's paid offering makes the software easier to use and adds observability features. Nscale is one of two AI data center builders preparing to go public in the near future. Earlier this month, rival Switch Inc. confidently filed for an IPO that could reportedly value it at $50 billion.

Nscale Targets $3 Billion IPO as AI Data Center Demand Soars | PYMNTS.com

Deliberations are ongoing, and the details could change, according to the report. Nscale is developing data centers in Norway and West Virginia, and the company has told potential investors that it has $51 billion in total contracted revenue, per the report. Nscale did not immediately reply to PYMNTS' request for comment. Nscale announced in March that it raised $2 billion in a Series C funding round that valued the company at $14.6 billion. The company said its Series C was the largest in European history. Nscale announced in September that it raised $1.1 billion in a Series B funding round and that this was the largest Series B in European history. Days later, on Oct. 1, Nscale said that it closed a $433 million pre-Series C SAFE backed by key investors. When announcing the Series C in May, Nscale CEO and Founder Josh Payne said that AI is "the fourth industrial revolution" and that AI will be integrated into every industry, product and job over the next five years. "This is leading to the largest infrastructure buildout in human history," Payne said. "Nscale is leading this buildout. We are building this foundation that the market sits on, the engine of superintelligence." Nscale announced in July that it closed a $900 million revolving credit facility to accelerate its AI data center buildout and capital deployment across the United States, Europe and the Asia-Pacific region. The company said its AI cloud platform includes software, compute and power, and it is used by enterprises, governments and communities. According to Friday's Bloomberg report, there has been a wave of IPOs as companies race to build AI data centers and lease out processing power. Among them are Blackstone Digital Infrastructure Trust, which raised $2 billion in an IPO in May; Csquare, which raised $1.21 billion in an IPO in July; and Switch, which filed confidentially for a listing that could take place as soon as November, per the report.

Nscale seeks $3 billion US IPO amid AI data center rush By Investing.com

Investing.com - Nscale is seeking to raise as much as $3 billion in a US initial public offering that could take place as soon as September, according to Bloomberg, citing people familiar with the matter. The London-based artificial intelligence data center company is working with Goldman Sachs Group Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) on the potential listing. The company has told prospective investors it has about $51 billion of total contracted revenue ahead of the listing, people familiar with the matter said. Nscale is developing data centers in sites including Norway and West Virginia. Deliberations are ongoing and details of the IPO plan could change, the people said. The listing could be delayed. Nscale is working to add 10 gigawatts of power for its AI computing centers, adding to an existing 831 megawatts of active and contracted power, people familiar with the matter said. Companies like Nscale are spending tens of billions of dollars on chips and other equipment to lease out processing power. The offering joins a rush of artificial intelligence data center companies tapping public market investors. Bloomberg News previously reported on the company's IPO plans and its banking advisers. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.