Nscale signs expansion agreement with Microsoft to build large-scale AI data center in Texas

Tech     7:51am, 18 October 2025

Nscale recently announced that it has signed an expansion agreement with Microsoft to build a large-scale artificial intelligence data center in Texas, USA. The agreement covers the delivery of approximately 104,000 NVIDIA GB300 GPUs and is one of the largest artificial intelligence infrastructure contracts to date. The total contract volume reaches approximately 200,000 GPUs and is distributed in many locations in Europe and the United States.

The data center is located in the 240MW ultra-large-scale computing park in Texas, and GPUs will be delivered in phases in the third quarter of 2026. Nscale has cooperated with Ionic Digital, the site lessor, and the park is planned to be expanded to 1.2GW. Microsoft holds the option for the second phase of 700MW expansion, starting at the end of 2027.

Nscale will deliver approximately 12,600 NVIDIA GPUs of the same model at the Start Campus in Sines, Portugal in the first quarter of 2026, providing European customers with complete sovereign AI solutions. In the UK, Nscale and Microsoft have previously announced that the Loughton AI Park will build the UK's largest NVIDIA AI supercomputer in early 2027, with approximately 23,000 GB300 GPUs supporting Microsoft Azure services.

The estimated value of this contract is as high as US$14 billion, and given that Nscale has raised US$1.5 billion in funding this year, the company is valued at approximately US$3 billion, demonstrating the status and expansion power of AI infrastructure.

Nscale founder and CEO Josh Payne emphasized that the cooperation demonstrates Nscale’s capabilities and scale as the world’s leading AI infrastructure provider, and Nscale joins hands with important partners such as Dell Technologies to jointly meet the expanding GPU demand and customer customized services.

Nscale plans massive Texas AI data center for Microsoft in expanded deal for 200,000 Nvidia chips Nscale Contracts Approximately 200,000 NVIDIA GB300 GPUs Nvidia-Backed Startup Nscale, Microsoft Strike AI Infrastructure Deal Nscale Secures $14 Billion Deal with Microsoft for IPO Nscale strikes multi-billion Microsoft deal for Nvidia AI chips across US and Europe Nscale deepens Microsoft alliance to deliver Nvidia AI infrastructure at scale