Nscale Aims for $3 Billion IPO in AI Data Center Push

Nscale, a developer of artificial intelligence data centers, is working toward an initial public offering that could raise as much as $3 billion, Bloomberg reported Friday. The listing could arrive as soon as September, though the terms remain under discussion, the people said.

The company closed a $2 billion Series C in March at a $14.6 billion valuation, which it called the largest Series C in European history. That followed a $1.1 billion Series B in September and a $433 million pre-Series C SAFE note in October.

Nscale has told potential investors it holds $51 billion in total contracted revenue, the report said. The figure covers multi-year leases for computing capacity, according to the report. The company is building data centers in Norway and West Virginia.

CEO Josh Payne described AI as "the fourth industrial revolution" in a statement announcing the Series C. "This is leading to the largest infrastructure buildout in human history," Payne said. "Nscale is leading this buildout."

The company secured a $900 million revolving credit facility in July to accelerate data center construction across the U.S., Europe and Asia. Nscale's platform combines software, computing capacity and power, serving enterprises and government clients.

Nscale's planned float follows a string of AI-infrastructure IPOs. Blackstone Digital Infrastructure Trust raised $2 billion in May. Csquare raised $1.21 billion in July. Switch filed confidentially for a listing that could come as soon as November, Bloomberg reported.

The IPO could rank among the largest in the data center sector this year if completed at the $3 billion target. Nscale did not respond to a request for comment. Deliberations are ongoing and the terms may shift, the people said.