Artificial intelligence data center developer Nscale has formally filed for an initial public offering with the US Securities and Exchange Commission, aiming to list on the New York Stock Exchange under the ticker "NSCL". The London-based company is seeking to raise up to roughly $3 billion from the offering, with proceeds earmarked for data center equipment investments to meet surging computational demand across the AI sector.

Nscale has emerged as one of the fastest-rising "new cloud" operators amid the recent AI infrastructure boom, primarily renting out computing resources to enterprises developing AI models and applications. The company counts Nvidia Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT) among its partners and has secured large-scale compute agreements with AI firms including Anthropic. However, its rapid expansion has come with substantial losses. In the six months ended June 30, Nscale reported revenue of $140.6 million, a more than twelvefold jump from $10.4 million in the same period a year earlier, while its net loss widened from $368.9 million to $1.02 billion.

Where to begin with Nscale's story

Nscale was spun out of a cryptocurrency mining operation in early 2024 and quickly pivoted into AI data center operations. Unlike traditional hyperscale cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, Nscale belongs to a newer breed of "new cloud" operators that build infrastructure centered on GPU-based AI computing resources and lease that capacity to major tech companies and AI model developers. In March, the company closed a Series C funding round led by Norwegian industrial investment group Aker and investment firm 8090 Industries, valuing Nscale at approximately $14.6 billion. Nvidia and Nokia also participated in that round. The current IPO push for up to $3 billion signals the company's intention to tap public capital markets to fund its fast-expanding data center and GPU infrastructure.

A key asset underpinning Nscale's growth is its access to large-scale power and data center resources. As of August 2026, the company's data centers controlled or owned over 10 gigawatts (GW) of power capacity, with total contract value reaching approximately $103 billion. Nscale is building so-called "hyperscale AI hubs" in Norway, Portugal, Texas, and West Virginia, each with power capacity exceeding 200 megawatts (MW). The Narvik, Norway facility has become a significant collaboration point with Microsoft. In April, the company agreed to add more than 30,000 Nvidia chips to its existing compute lease agreement with the tech giant, further expanding its AI computing capabilities.

The company's business model requires heavy upfront capital outlays for GPU procurement, data center construction, and securing adequate power supplies, while long-term compute lease contracts with large tech firms and AI companies improve revenue predictability. One of its most prominent customer agreements comes from Anthropic. In August, Anthropic announced it had agreed to spend $45 billion leasing AI cloud computing capacity from Nscale's flagship Monarch Compute Campus project in West Virginia. The Monarch site spans approximately 2,250 acres. According to Nscale's filing, roughly 2 GW of total power capacity is expected to come online by the first half of 2028, with plans to expand further to about 8 GW by 2031. If executed as planned, Monarch would become a cornerstone of Nscale's future compute expansion.

Why just 10 ASX 200 shares?

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In July, Nscale agreed to acquire San Francisco-based AI software startup Anyscale for $1.65 billion, aiming to help clients use AI computing resources more efficiently through software capabilities. This move signals the company's evolution from purely providing data center and GPU capacity toward extending into the AI infrastructure software layer. Nscale's close relationship with Nvidia has been fundamental to its rapid expansion of AI compute supply, but the IPO filing also identifies this dependence as a risk factor. The company acknowledges its reliance on Nvidia for GPU supply. During its Series B round in 2025, Nscale issued warrants to Nvidia, making the AI chip giant a shareholder with over 5% ownership. If exercised, these warrants would give Nvidia non-voting shares in Nscale. The capital ties continue to deepen. As part of a subscription agreement dated September 15, Nscale agreed to provide investors with $2.1 billion in unsecured convertible loan notes, while also offering up to $1 billion in unsecured convertible loan notes or non-voting shares to Nvidia, with that transaction expected to close by November 16. For Nscale, strong capital and supply relationships with Nvidia help secure the most critical GPU resources for AI infrastructure buildout; however, any changes in GPU supply, procurement terms, or the partnership itself could impact its expansion plans.

Despite rapid revenue growth, Nscale remains in a heavy capital investment phase. In the six months through June, revenue surged from $10.4 million to $140.6 million year-over-year, but net losses widened from $368.9 million to $1.02 billion. The simultaneous expansion of revenue and losses reflects the asset-heavy growth model typical of AI data centers. GPU procurement, power infrastructure, land, data center construction, and cooling systems all require massive upfront capital, while revenue materializes gradually as compute capacity comes online and customer contracts are executed. For investors evaluating Nscale ahead of its public market debut, the key considerations may extend beyond its $100 billion-plus contract pipeline to include how quickly those contracts convert into revenue and cash flow, as well as the capital required to fulfill those orders.

Nscale's board also features notable names, including former Meta Platforms (NASDAQ: META) Chief Operating Officer Sheryl Sandberg and former Meta President of Global Affairs and UK Deputy Prime Minister Nick Clegg. According to the IPO filing, Aker, Sandton Capital Partners, and a trust associated with founder and CEO Josh Payne each hold at least 5% stakes in the company. The timing of Nscale's listing coincides with AI infrastructure becoming a significant driver of the global IPO market. Data shows that IPO proceeds this year have reached approximately $161.4 billion, the highest level since 2021, with companies offering investors exposure to AI infrastructure playing a major role. SpaceX's record IPO raised $86.2 billion this year, with its sale of AI computing capacity to enterprises including Anthropic becoming a central part of its public offering narrative. South Korean memory chip maker SK Hynix's $26.5 billion listing also prominently highlighted data center demand. Brookfield-backed data center firm Csquare raised $1.2 billion through an IPO in July. Nscale's offering is being led by Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase & Co (NYSE: JPM), and Morgan Stanley (NYSE: MS), with 19 additional banks participating in underwriting.