Takeaways by Saasverse AI
- Nscale | Series B | $1.1 Billion | AI-Optimized Data Centers.
- Led by Aker ASA, with participation from Nvidia, Dell Technologies, and Nokia.
- Funds to accelerate data center development, expand engineering teams, and launch AI model fine-tuning services.
Nscale Global Holdings Ltd., a leader in AI-optimized data center construction, has announced the successful closure of a $1.1 billion Series B funding round. The round was spearheaded by Norwegian investment firm Aker ASA, with prominent tech players including Nvidia, Dell Technologies, and Nokia also joining as strategic investors. This infusion of capital underscores the growing importance of AI-specific infrastructure as demand for advanced AI workloads continues to surge.
At the core of Nscale's operations is its innovative approach to designing data centers tailored for AI workloads. These facilities leverage Nvidia GPUs and Kubernetes-based infrastructure, with additional support for Slurm, an open-source alternative to Kubernetes often utilized for training large language models. Currently, Nscale operates a 30-megawatt data center in Glomfjord, Norway, located within the Arctic Circle—a region attractive for its sustainable energy potential and natural cooling advantages.
In June, Nscale signed a landmark agreement with OpenAI to construct a second, significantly larger data center in Norway. This new facility will consume 520 megawatts of power and house 10,000 Nvidia GPUs. Microsoft has already inked a five-year contract worth $6.2 billion to lease portions of this infrastructure, further solidifying Nscale's role as a critical enabler in the AI ecosystem.
Beyond Norway, Nscale is also expanding its footprint into the UK. A state-of-the-art data center is under construction to support OpenAI's deployment of the Stargate U.K. AI cluster. The facility is expected to launch in Q1 2026 with 8,000 GPUs, with plans to scale up to 31,000 GPUs, reflecting the growing demand for AI compute resources.
The newly secured funding will primarily be allocated toward scaling Nscale's data center projects and bolstering its engineering workforce. Additionally, the company plans to roll out new services, including AI model fine-tuning and developer tools designed to benchmark neural network performance, further expanding its value proposition in the AI infrastructure space.
Saasverse Insights
This funding round marks Nscale as a rising star in the AI infrastructure market, an area poised for exponential growth as enterprises race to deploy AI-powered solutions. With Nvidia’s participation, the partnership strengthens the integration of cutting-edge GPU technology into Nscale's offerings, ensuring its competitive edge in supporting complex AI workloads. The strategic backing from industry giants like Dell and Nokia also signals robust confidence in Nscale's vision and operational capabilities.
Looking ahead, the expansion into the UK and the collaboration with OpenAI highlight an emerging trend: the localization of AI compute clusters to meet regional demands and regulatory requirements. Nscale's data centers, powered by sustainable energy sources, also align with the increasing emphasis on green AI infrastructure, addressing both performance and environmental considerations.
For investors and stakeholders in the AI, SaaS, and Cloud sectors, Nscale's trajectory offers a clear indicator of the growing importance of specialized infrastructure in scaling artificial intelligence technologies. The company’s focus on innovation, sustainability, and strategic partnerships positions it as a key player in shaping the future of AI data center ecosystems.