AI data center company Nscale plans to go public in the US as early as September, aiming to raise up to $3 billion

Headquartered in London, Nscale has expanded aggressively into the artificial intelligence data center business in recent years and is currently building data centers in regions such as Norway and West Virginia, US. As the demand for AI computing power from global tech companies rapidly increases, the company hopes to raise more funds from the capital markets to support its large-scale infrastructure expansion plans.

Sources previously revealed that Nscale has told potential investors that before the listing, its total contracted revenue amounts to about $51 billion, providing a significant business backbone for its IPO.

However, discussions around the IPO are still ongoing, and the specific fundraising scale and listing timeline may still change; there is also a possibility that the IPO could be delayed. Nscale declined to comment on this matter.

Under the current plan being discussed, Nscale could raise up to about $3 billion in its US IPO. If successful, it will be one of the largest recent fundraising projects in the AI infrastructure sector.

The composition of Nscale's board has also attracted market attention, including former Meta Platforms (META.US) Chief Operating Officer Sheryl Sandberg, and Meta's former Head of Global Affairs and former UK Deputy Prime Minister Nick Clegg.

Nscale's business model centers on building large-scale AI data centers, purchasing large numbers of AI chips and other infrastructure equipment, and then leasing computing power to clients needing to train and operate artificial intelligence models.

With the rapid development of generative AI, the demand for GPUs, data centers, and electricity resources among global technology companies has soared, and AI infrastructure companies like Nscale are investing tens of billions of dollars to expand their computing capabilities.

According to sources, the company plans to add about 10 gigawatts (GW) of power capacity to its AI computing centers. Previously, Nscale already had about 831 megawatts (MW) of operating or contracted power capacity.

For reference, 1 gigawatt of electricity can supply about 750,000 US households at any given time. This means if Nscale achieves its 10-gigawatt target, its AI infrastructure scale will expand significantly.

The massive electricity demand also reflects the capital-intensive nature of current AI infrastructure construction. Enterprises not only need to purchase large quantities of AI chips but must also invest heavily in building data centers and securing adequate power supplies and related infrastructure resources.

In addition to expanding data center scale, Nscale is also extending into AI software and computing power management sectors.

In July this year, the company agreed to acquire software startup Anyscale for $1.65 billion, hoping its technology will help clients use AI computing resources more efficiently.

By integrating data center infrastructure with software platforms, Nscale hopes to not only provide clients with computing capacity but also improve the efficiency of AI power usage, thereby broadening its business coverage in the AI infrastructure industry chain.

As Nscale prepares to go public, AI infrastructure companies are witnessing a fundraising boom in the capital markets.

In May of this year, data center acquisition platform Blackstone Digital Infrastructure Trust raised $2 billion through its IPO; Csquare, backed by Brookfield, raised $1.21 billion upon listing in July.

At the same time, data center operator Switch has secretly submitted a listing application and may IPO as early as November this year. Previous reports indicated the company was seeking a valuation of nearly $50 billion in a round of funding, including debt.

Behind this series of fundraising events is the rapid expansion in capital demand for AI infrastructure construction globally. As large AI models require more and more computing resources, data center operators must invest enormous amounts of money to purchase chips, build facilities, and secure sufficient electricity supply, driving more enterprises to tap into equity and debt markets for financing.