Nscale Raises $2 Billion to Expand AI Data Centers, Reaching $14.6 Billion Valuation

Nscale said Monday it has raised $2 billion in a Series C funding round valuing the AI data-center and cloud infrastructure startup at $14.6 billion, as investors continue pouring capital into companies building the computing backbone for artificial intelligence. The round was led by Aker ASA and 8090 Industries and included participation from Nvidia, along with Astra Capital Management, Citadel, Dell, Jane Street, Lenovo, Linden Advisors, Nokia and Point72.

The London-based company, founded in 2024, develops AI-focused data centers and operates cloud computing services designed to support large-scale machine learning workloads. Nscale said the new funding will accelerate the build-out of a vertically integrated AI infrastructure platform spanning GPU compute, networking, data services and orchestration software across Europe, North America and Asia.

Alongside the financing, the company is adding several high-profile figures to its board: former Meta COO Sheryl Sandberg, former U.K. deputy prime minister and Meta executive Nick Clegg, and former Yahoo president Susan Decker.

The investment reflects continued demand for infrastructure capable of supporting the surge in AI development. “The AI boom is leading to the largest infrastructure buildout in human history,” said Josh Payne, Nscale’s founder and CEO. “We are building this foundation that the market sits on, the engine of superintelligence.”

The Series C follows a rapid sequence of fundraising for the startup over the past year. Nscale secured a $1.1 billion Series B round in September, followed by a $1.4 billion delayed draw term loan announced in February. The company did not disclose the valuation associated with the Series B. According to a source familiar with the matter, the new valuation is more than double the confidential valuation from that earlier round, though the company declined to comment.

The latest financing total also includes $433 million raised through a pre-Series C SAFE round in October.

Nscale operates data centers in the U.K., the U.S., Norway, Portugal and Iceland, positioning the company as part of a broader global push to expand AI computing capacity. It has also recently formed partnerships with major technology firms. In October, Nscale announced an expanded partnership with Microsoft valued at $14 billion, a figure first reported by the Financial Times and confirmed by CNBC. Earlier in the year, the company also partnered with OpenAI to launch a Stargate-branded AI data center in Norway.

The company has also signaled longer-term ambitions to access public markets. Nscale confirmed to CNBC in October that it is considering an initial public offering.

This analysis is based on reporting from CNBC.

Image courtesy of PYMNTS.

This article was generated with AI assistance and reviewed for accuracy and quality.