Massive AI Infrastructure Expansion
UK-based AI infrastructure provider Nscale has significantly expanded its partnership with Microsoft through what sources indicate could be one of the largest artificial intelligence infrastructure contracts ever signed. According to reports, the deal involves the deployment of approximately 200,000 Nvidia GB300 GPUs to Microsoft facilities across multiple countries.
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Financial Scale and Deployment Timeline
While neither company has officially disclosed the contract value, analysts suggest the expanded partnership could generate as much as $14 billion in revenue for Nscale. The deployment schedule reportedly includes delivering 104,000 Nvidia GPUs to a 240 MW Microsoft facility in Texas by Q3 2025. Microsoft maintains an option to expand the Texas facility by an additional 700 MW by the end of 2027, with Nscale planning to eventually scale the site to 1.2 GW capacity.
European Expansion and UK Supercomputer
The partnership extends significantly into European markets, with Nscale scheduled to deliver approximately 12,600 Nvidia GPUs to a Microsoft data center campus in Portugal starting next year. This expansion builds on previously announced plans to construct what the companies describe as the UK’s “largest” Nvidia AI supercomputer at Nscale’s Loughton AI campus. The 50 MW facility, scalable to 90 MW, is expected to house around 23,000 Nvidia GB300 GPUs from early 2027 to power Microsoft Azure services.
Strategic Partnerships and Industry Context
The massive infrastructure deal comes amid significant investment activity in the AI sector, similar to recent developments where the venture capital industry faces return-free risk while continuing to fund ambitious technology projects. Nscale has also partnered with OpenAI to launch the AI giant’s Stargate venture in the UK, following a similar August collaboration in Norway that targets delivering 100,000 Nvidia GPUs by the end of 2026.
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Funding and Company Growth
The expanded Microsoft agreement follows shortly after Nscale raised $433 million in a pre-Series C SAFE round with backing from Nvidia, Dell, Nokia, and Blue Owl, among others. This funding came just one week after the startup secured $1.1 billion in what reports indicate was the largest Series B round in European history, valuing the company at approximately $3 billion. The rapid funding progression demonstrates the intense investor interest in AI infrastructure, mirroring trends seen in other technology sectors such as when Colt DCS and ESR launched a 130MW hyperscale data center to meet growing computational demands.
Executive Perspectives
“Nscale is proud to partner with Microsoft on this historic AI infrastructure contract,” said Josh Payne, founder and CEO of Nscale. “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. The pace with which we have expanded our capacity demonstrates both our readiness and our commitment to efficiency, sustainability and providing our customers with the most advanced technology available.”
Jon Tinter, president of business development and ventures at Microsoft, commented that “Our agreement, announced today, demonstrates our commitment to ensuring that our products are available globally with sustainability and scalability in mind. Nscale is an ideal partner for this mission, given its deep expertise in providing AI infrastructure services at scale.”
Global AI Infrastructure Race
This massive deployment occurs amid a global race to build AI computational capacity, with similar large-scale infrastructure projects emerging worldwide. The scale of investment reflects the growing importance of AI infrastructure, comparable to other major technology initiatives such as India’s UPI going global with PayPal integration and economic digitalization efforts. According to industry analysts, such investments are crucial for maintaining competitive advantage in the rapidly evolving artificial intelligence landscape.
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