Nscale eyes $3B US IPO in AI data center listing rush
What's the deal? London-based Nscale is seeking to raise as much as $3 billion in a US initial public offering that could take place as soon as September, according to people familiar with the matter. The AI cloud firm is working with Goldman SachsDealroom has a profile for this one. Try Dealroom → and JPMorgan ChaseDealroom has a profile for this one. Try Dealroom → on the potential listing.
What's the endgame? Nscale develops data centers to lease out processing power for artificial intelligence. It has told prospective investors it holds about $51 billion of total contracted revenue ahead of the listing.
The M&A angle: In July, Nscale agreed to buy software startup Anyscale in a $1.65 billion deal, aiming to help customers use AI computing power more efficiently.
Where it's expanding: The company is building data centers at sites including Norway and West Virginia. It is working to add 10 gigawatts of power to its existing 831 megawatts of active and contracted capacity — a single gigawatt can power roughly 750,000 US homes at any given time.
Who's involved? Nscale's board includes former Meta PlatformsDealroom has a profile for this one. Try Dealroom → executives Sheryl Sandberg and Nick Clegg, who previously served as the UK's deputy prime minister.
Why now? Companies like Nscale are racing to build out AI data centers, spending tens of billions of dollars on chips and equipment. That has prompted a wave of IPOs: Blackstone Digital Infrastructure TrustDealroom has a profile for this one. Try Dealroom → raised $2 billion in May, and BrookfieldDealroom has a profile for this one. Try Dealroom →-backed CsquareDealroom has a profile for this one. Try Dealroom → raised $1.21 billion in July.
What could go wrong? Deliberations are ongoing, details could change, and the listing could be delayed, the people said. A representative for Nscale declined to comment.
The signal: Nscale would join a crowded pipeline of AI infrastructure listings, with Switch having filed confidentially for a listing as soon as November that could approach a $50 billion valuation including debt. Public market investors are increasingly the funding source for the capital-intensive buildout behind the AI boom.
Read more: Bloomberg
Image credit: Jemimus
