Record 1.1B Series B backs Nscale’s AI hyperscaler expansion

Nscale has recently closed a monumental $1.1 billion Series B round, marking the largest funding round in European history. The UK-based company is set to utilize this fresh capital to expedite its AI hyperscaler expansion on a global scale. The primary focus will be on enhancing its AI infrastructure growth, with plans to bolster GPU-powered data centers and vertically integrated services across key regions such as Europe, North America, and the Middle East.

This significant milestone not only underscores the rapid surge in demand for AI infrastructure but also emphasizes the strategic significance of sovereign, energy-efficient platforms developed in Europe. It serves as a clear indicator of the increasing opportunities available for suppliers, partners, and enterprises in need of extensive compute capacity.

A hyperscaler designed for AI

The funding round was spearheaded by Norwegian investment firm Aker ASA, with support from existing investors Sandton Capital and new contributors including Blue Owl, Dell, Fidelity Management & Research Company, G Squared, Nokia, NVIDIA, Point72, and T.Capital. Nscale distinguishes itself as an AI-native infrastructure platform, offering compute, networking, storage, and managed services through its owned and colocated data centers.

By strategically siting hubs in Norway and establishing smaller metro clusters in crucial markets, the company leverages cost-effective renewable energy sources and proximity to latency-sensitive workloads to optimize its operations.

Josh Payne, the CEO of Nscale, expressed, “We are constructing the AI-native Infrastructure platform of the future. AI is revolutionizing industries, economies, and national strategies – but this transformation is impossible without the essential physical backbone: the data centers, the GPUs, and the software to coordinate them.”

Strategic collaborations and expansion strategies

The recent funding round follows a series of significant partnerships. In the UK, Nscale has joined forces with Microsoft, NVIDIA, and OpenAI to develop what is referred to as the largest AI supercomputer in the country. In Norway, the company has partnered with Aker ASA and OpenAI to introduce Stargate Norway, with plans to deploy 100,000 NVIDIA GPUs by 2026.

Furthermore, a substantial multi-billion-dollar agreement with Microsoft is in place to deliver extensive AI infrastructure in Narvik. Apart from infrastructure enhancements, Nscale is rolling out product innovations across the AI spectrum, including service fine-tuning, inference APIs, orchestration tools, and private cloud functionalities.

Industry supporters have highlighted the momentum behind Nscale. Øyvind Eriksen, President & CEO of Aker ASA, stated, “AI is reshaping the global economy and redefining the value of renewable energy. With Nscale, we are endorsing infrastructure that is sovereign, scalable, and purpose-built to accelerate this transformation.”

Justin Hotard, CEO of Nokia, added, “The demand for secure, scalable AI infrastructure build-out in Europe and worldwide is rapidly increasing. Nokia is participating in Nscale’s investment round and announcing a partnership with Nscale to combine our IP and optical networking expertise with their cutting-edge infrastructure platform.”

An emerging European hyperscaler

With a leadership team that has already delivered over 50 data centers and one of the most extensive GPU pipelines globally, Nscale is positioning itself as a unique European competitor to the dominant hyperscalers based in the US and Asia. For enterprises and governments seeking sovereign AI capabilities, the company aims to offer both scale and compliance with local regulatory and energy standards.

“Europe is in need of a Hyperscaler, and Nscale is stepping up to meet that demand,” Payne affirmed.