London-based Nscale, backed by Nvidia, has struck a deal worth up to $14 billion with Microsoft to deploy roughly 200,000 Nvidia GB300 chips, marking one of the largest GPU infrastructure agreements in the global AI race.
The partnership cements Nscale’s position as one of Europe’s fastest-growing data centre providers and strengthens its plans to go public as early as next year.
Nscale expands Microsoft partnership across Texas and Portugal
Under the new agreement, Nscale will deliver about 104,000 Nvidia GB300 GPUs for Microsoft’s hyperscale campus in Texas over the next 12 to 18 months.
The Texas facility, leased from Bitcoin miner Ionic Digital, currently draws 240 megawatts (MW) from the state grid and could scale up to 1.2 gigawatts (GW) by 2027—enough to power one million US homes.
Another 12,600 GPUs will be installed at Microsoft’s Start Campus data centre in Portugal, extending their collaboration.
The announcement is building on plans announced in September to deliver the UK’s largest NVIDIA AI supercomputer at Nscale’s Loughton AI Campus.
The 50MW facility, scalable to 90MW, is set to house around 23,000 NVIDIA GB300 GPUs starting Q1 2027 to power Microsoft Azure services.
The move complements a recent announcement from the Aker-Nscale Joint Venture, which signed a multi-year agreement to deliver approximately 52,000 NVIDIA GB300 GPUs to Microsoft from its hyperscale AI campus in Narvik, Norway.
Microsoft has an option to add another 700MW of capacity from late 2027.
The infrastructure push reflects the growing demand for AI compute power as global tech companies race to secure access to high-end chips amid supply constraints.
IPO plans gain traction as funding surges
Nscale’s deal with Microsoft comes at a pivotal moment as the company eyes a potential stock market listing in late 2026.
The company has raised $1.5 billion in funding in the past month, valuing it at roughly $3 billion.
Nvidia recently invested £500 million, describing Nscale as a “national champion for the UK.”
Other strategic backers include Dell, Nokia, and investment firms Fidelity, Blue Owl, and G Squared.
AI infrastructure boom fuels hyperscaler demand
The deal underscores how major tech firms like Microsoft are outsourcing compute capacity to specialised providers amid the surge in artificial intelligence development.
Microsoft is simultaneously scaling up with other infrastructure partners such as Nebius, which recently signed a $17.4 billion GPU capacity agreement.
In Europe, Nscale is also collaborating with OpenAI and Aker on a $1 billion AI data centre in Norway, powered entirely by renewable energy.
The project, dubbed Stargate Norway, highlights a wider trend of pairing AI expansion with sustainability goals.
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