Nscale’s Reported $3 Billion IPO Would Put AI Data-Center Contracts to a Public Test

Nscale is reportedly seeking to raise as much as $3 billion in a US initial public offering, potentially bringing one of the AI industry’s most capital-intensive businesses to public investors. The London-based AI data-center operator could list as soon as September, though the discussions are ongoing and the terms or timing could change.

Nscale develops and operates AI data centers. Companies in this part of the market spend heavily on chips and other equipment, then lease processing power to customers. The model is therefore constrained by the delivery of physical infrastructure, rather than only by software development.

People familiar with Nscale’s plans said the company is working to add 10 gigawatts of power for AI computing centers, alongside 831 megawatts of active and contracted power. Nscale is developing data centers in Norway and West Virginia; it is also building AI infrastructure in more than a dozen locations worldwide, according to SiliconANGLE.

Before a possible listing, people familiar with the matter said Nscale told prospective investors it had about $51 billion in total contracted revenue. That figure represents the reported value of data-center contracts with customers, not an IPO valuation or cash already collected. It gives investors a measure of the commitments Nscale says it must turn into operating capacity.

SiliconANGLE reported that Microsoft commissioned 1.35 gigawatts of capacity from Nscale at its West Virginia campus, where Nscale is expected to use Nvidia Vera Rubin NVL72 systems. The publication also reported that Nscale will host 300,000 Nvidia Blackwell Ultra chips for Microsoft at four other locations under an infrastructure contract reportedly worth $14 billion.

The potential IPO would follow a $2 billion Series C that Nscale announced in March at a $14.6 billion valuation. In July, the company announced a $900 million revolving credit facility for AI data-center expansion and capital deployment across the US, Europe and Asia-Pacific, and agreed to buy software startup Anyscale for $1.65 billion to help customers use AI computing power more efficiently.

Other data-center vehicles are also testing public markets

• Blackstone Digital Infrastructure Trust raised $2 billion in a May IPO.
• Brookfield-backed Csquare raised $1.21 billion in an IPO in July.
• Switch confidentially filed for a listing that could take place as soon as November, according to Bloomberg reporting.

Nscale is working with Goldman Sachs and JPMorgan Chase on the potential offering, and a company representative declined to comment. The report’s sources did not specify a target valuation; valuation, timing and whether the discussions lead to a public filing remain unresolved.