Nvidia (NVDA)-backed British cloud computing startup Nscale Global Holdings has sealed a potential $14 billion deal to supply AI chips to tech titan Microsoft (MSFT).
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Nscale will deliver approximately 104,000 Nvidia GB300 GPUs to Microsoft via its 240MW hyperscale AI campus in Texas from late 2026.
Super-Sized Contract
The site is leased from Ionic Digital, and Nscale plans to scale its footprint to 1.2GW over time, with Microsoft holding an option on a second phase of 700MW starting in late 2027.
From Q1 next year, Nscale will deliver approximately 12,600 Nvidia GB300 GPUs to Microsoft at the Start Campus data center in Sines, Portugal.
The deal will be executed in collaboration with Dell Technologies (DELL), Nscale said.
Microsoft shares were up only slightly in pre-market trading, but the deal should accelerate its cloud and AI revenue growth – see below:
Nscale didn’t disclose financial details for the agreement, which it described as one of the largest AI infrastructure contracts ever signed. But, according to the Financial Times, based on a comparable contract, the deal could bring in up to $14 billion in revenue for Nscale.
Josh Payne, founder and CEO of Nscale, said: “This agreement confirms Nscale’s place as a partner of choice for the world’s most important technology leaders. Few companies are equipped to deliver GPU deployments at this scale, but we have the experience and have built the global pipeline to do so.”
IPO Hope
This is the latest significant deal for Nscale in recent weeks. Last month, it said it would roll out AI infrastructure in the U.K. with Nvidia and OpenAI as part of the Stargate U.K. project.
Nscale also said it plans to develop the U.K.’s largest AI supercomputer with Microsoft at its Loughton AI Campus. The 50MW facility, scalable to 90MW, will house approximately 23,000 Nvidia GB300 GPUs from Q1 2027 to power Microsoft Azure services.
In July, Nscale said it was partnering with Norwegian industrial group Aker and OpenAI to set up Stargate Norway, a data center project in northern Norway that is expected to house 100,000 Nvidia GPUs.
It also comes weeks after Nscale closed a $1.1 billion Series B funding round that it said was the largest in European history. Nvidia, Dell Technologies and Nokia (NOK) injected funds into the startup.
The deal could also power up plans by Nscale, which was previously a bitcoin mining firm until it spun off from Akron Energy last year, to launch an IPO later next year.
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