Key facts
- Nscale has secured a $900 million revolving credit facility.
- The financing is provided by 12 banks, including J.P. Morgan, Goldman Sachs, and Morgan Stanley.
- The funds will be used to construct new AI data centres in Europe, the US, and Asia-Pacific.
- The credit facility allows Nscale to draw down funds as needed and repay them over time.
- Nscale previously raised $2 billion at a $14.6 billion valuation and $790 million for a Norway project.
British data centre builder Nscale has secured a $900 million revolving credit facility from 12 major banks, including J.P. Morgan, Goldman Sachs, and Morgan Stanley. The financing is intended to fuel the company's global expansion by supporting the construction of new AI data centres across Europe, the US, and Asia-Pacific, driven by surging demand for computing power.
The revolving credit facility offers Nscale flexibility, allowing it to draw down funds as projects require and repay them over time, thereby avoiding immediate equity dilution or taking on the full debt at once. This move comes after Nscale's significant fundraising efforts in the past seven months, including a $2 billion raise at a $14.6 billion valuation earlier this year and a further $790 million for a data centre in Norway.
Nscale's chief executive, Josh Payne, stated that the facility reflects institutional confidence in the company's platform and its role in building essential infrastructure for AI development. However, the deal occurs amid increasing investor scrutiny of the AI sector's rapid spending. Experts like Mark Boost, CEO of cloud provider Civo, highlighted the massive capital influx into AI infrastructure but cautioned that long-term success hinges on converting this investment into sustainable commercial demand, rather than a speculative 'arms race'. Nscale maintains it builds infrastructure based on existing long-term customer contracts.