Nscale Signs Major AI Deal With Microsoft

Nscale Inks Massive AI Infrastructure Deal With Microsoft

AI startup Nscale has made headlines after announcing a groundbreaking partnership with Microsoft to strengthen global artificial intelligence infrastructure. The collaboration marks a major milestone as Nscale inks massive AI infrastructure deal with Microsoft, aimed at deploying approximately 200,000 Nvidia GB300 GPUs across multiple data centers worldwide.

Nscale Signs Major AI Deal With Microsoft

Image Credits:Omar Marques/SOPA Images/LightRocket / Getty Images

A Bold Step in AI Infrastructure Expansion

The partnership will see the GPUs distributed across three European data centers and one in the U.S., combining Nscale’s hyperscale AI expertise with Microsoft’s cloud infrastructure capabilities. This large-scale rollout highlights the growing demand for advanced AI hardware as tech giants race to secure GPU supply amid surging AI adoption.

Massive GPU Deployment Across Global Data Centers

According to Nscale, around 104,000 GPUs will be installed at a Texas data center leased by Ionic Digital over the next 12 to 18 months. This move will help Nscale expand its footprint at the facility to an impressive 1.2 gigawatts.

Meanwhile, 12,600 GPUs will be deployed to the Start Campus in Sines, Portugal, starting in early 2026. The remaining GPUs will support Nscale’s growing data center operations in Norway and the United Kingdom, strengthening its European infrastructure network.

Strengthening Ties with Microsoft and Aker

This deal builds upon Nscale’s ongoing collaborations with Microsoft and Aker, one of its key investors. Nscale plans to send 23,000 GPUs to its Loughton, England campus by 2027 and 52,000 GPUs to Microsoft’s AI campus in Narvik, Norway.

Nscale’s founder and CEO, Josh Payne, emphasized that the agreement solidifies the company’s reputation as a trusted partner for major tech players.

“Few companies are equipped to deliver GPU deployments at this scale,” Payne said. “We’ve built the global pipeline to make this possible.”

Nscale’s Rapid Growth and Future Plans

Founded in 2024, Nscale has grown at lightning speed, raising over $1.7 billion from investors including Aker, Nokia, and Nvidia, alongside Sandton Capital Partners, G Squared, and Point72. The company is already considering an IPO as early as late 2026, signaling strong confidence from both investors and partners.

Payne highlighted the company’s mission to create efficient, sustainable, and high-performance AI infrastructure capable of supporting the next generation of AI-driven applications.

“We are setting a new standard for how AI infrastructure is delivered — efficient, sustainable, and globally scalable,” Payne said.

Growing AI Hardware Demand

The Nscale-Microsoft AI infrastructure deal reflects the booming competition among tech giants to secure high-performance chips for large-scale AI systems. Recent industry moves include OpenAI’s purchase of six gigawatts worth of AMD chips and its separate partnership with Nvidia, which involves up to $100 billion in investments for additional GPU capacity.

As demand for GPUs and AI hardware continues to surge, partnerships like Nscale’s with Microsoft are expected to reshape the global AI data center landscape—driving innovation, boosting efficiency, and accelerating AI adoption worldwide.

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