Nscale, the UK-based AI infrastructure firm backed by Nvidia, will supply 200,000 Nvidia GPUs to Microsoft under a newly expanded agreement that spans data centers in Europe and the United States, the company said on Wednesday.
The deal, which could generate up to $14 billion in revenue, according to Financial Times estimates, will be carried out in collaboration with Dell Technologies. Nscale will begin deliveries in 2025 from its Texas and Portugal data centers, with future expansions planned in Texas.
Additionally, Nscale’s joint venture with Norwegian energy group Aker will supply 52,000 Nvidia chips from its AI campus in Narvik, Norway, strengthening Microsoft’s access to high-performance compute infrastructure across multiple regions.
The partnership comes amid a massive global push to expand AI computing capacity, as leading cloud providers—including Microsoft, Meta, and Alphabet—invest billions to meet demand. Analysts at Citigroup forecast AI infrastructure spending will exceed $2.8 trillion by 2029.
Nscale, which secured $1.1 billion in funding in September from Aker and Nokia, said the investment would help accelerate construction of new hyperscale AI facilities and reinforce its role in supplying next-generation computing hardware for global clients.
