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Nscale Secures $2B Funding to Power Microsoft’s $14.6B AI Cloud Expansion

AI-Felix
AI-Felix

Nscale Secures $2B Funding to Power Microsoft’s $14.6B AI Cloud Expansion

NVIDIA Blackwell AI Infrastructure Rack

In a move that signals the intensifying arms race for AI infrastructure, London-based data center startup Nscale Global Holdings Ltd. announced today that it has raised $2 billion in a Series C funding round. The investment, co-led by Norwegian energy giant Aker ASA and 8090 Industries, pushes Nscale’s valuation to a staggering $14.6 billion—more than doubling its worth in just six months.

The Microsoft Partnership

The funding news arrives alongside details of a massive $14.6 billion partnership with Microsoft Corp. Under this agreement, Nscale will host 200,000 of NVIDIA’s cutting-edge GB300 accelerators. This infrastructure will be split across Nscale’s strategic sites, with over half the chips deployed in their Texas facility and the remainder distributed between the United Kingdom and Portugal.

Sustainable AI Infrastructure

Nscale is distinguishing itself through advanced cooling technologies designed to handle the extreme thermal demands of next-generation GPUs. Their Portugal data center utilizes seawater regulation to maintain server temperatures, while the Texas site features a closed-loop liquid cooling system. These innovations are critical as hyperscalers like Microsoft and OpenAI look for scalable, energy-efficient environments to run their trillion-parameter models.

Expanding the Global Footprint

With this fresh capital, Nscale plans to expand its cloud operations into Asia, a region where it currently lacks a physical presence. This expansion is aimed at supporting the global surge in demand for "agentic AI"—autonomous systems that require massive localized compute to perform real-time tasks for enterprise users.

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