AI hyperscaler startup Nscale has announced a significant partnership with Microsoft to deploy approximately 200,000 Nvidia GB300 GPUs across new data centers in Europe and the United States. The deal positions the young company as a major player in the global race to build out next-generation AI infrastructure.
A Global GPU Rollout
The massive hardware deployment will be executed through Nscale-owned operations and a joint venture with strategic investor Aker. The distribution plan outlines a large-scale, multi-year rollout across four key locations.
The largest portion, 104,000 GPUs, is destined for a data center in Texas leased by Ionic Digital, with deployment scheduled over the next 12 to 18 months. Nscale plans to eventually expand this site’s capacity to 1.2 gigawatts. In Europe, the Start Campus data center in Sines, Portugal, will receive 12,600 GPUs starting in the first quarter of 2026. The remaining GPUs will be allocated to existing projects with Microsoft and Aker, with 23,000 GPUs heading to Loughton, England, in 2027 and 52,000 GPUs to Microsoft’s AI campus in Narvik, Norway.
Rapid Growth and IPO Ambitions
Despite being founded only in 2024, Nscale has demonstrated aggressive growth and a remarkable ability to secure capital and partnerships. The company has raised over $1.7 billion from a roster of strategic partners including Aker, Nokia, and Nvidia, alongside investors like Sandton Capital Partners, G Squared, and Point72.
“This agreement confirms Nscale’s place as a partner of choice for the world’s most important technology leaders,” said Josh Payne, founder and CEO of Nscale. He noted that the company is already exploring a potential IPO as early as the end of next year, signaling strong confidence in its market position and future trajectory.
Implications for the MENA AI Ecosystem
While Nscale’s current operations are focused on Europe and the US, this massive deal has significant ripple effects for the MENA region’s burgeoning tech scene. It underscores the intense global competition for essential AI compute resources like high-end Nvidia GPUs. For MENA-based AI startups, this trend highlights the increasing difficulty and cost of securing the necessary infrastructure to train and deploy large-scale models.
Furthermore, it sends a clear signal to regional VCs, sovereign wealth funds, and governments about the immense capital required to compete on the global AI stage. As countries like the UAE and Saudi Arabia push forward with ambitious national AI strategies, securing dedicated GPU capacity through direct partnerships and investments in data infrastructure will become a critical component of technological sovereignty and economic competitiveness.
About Nscale
Nscale is an AI hyperscaler startup founded in 2024 that specializes in deploying large-scale AI infrastructure. The company partners with leading technology firms to build and operate data centers equipped with advanced GPU hardware, catering to the growing global demand for AI compute power.
Source: TechCrunch
