Nscale lands $900 million revolving facility to expand AI data centers in three regions

Twelve banks syndicate revolving facility for Nvidia-backed startup

Nscale Global Holdings said it had secured a $900 million line of credit that would allow the U.K. artificial-intelligence infrastructure startup to expand the buildout of data centers across Europe, the U.S. and the Asia Pacific, according to a report from The Wall Street Journal.

“We are building the infrastructure that the world’s largest technology companies depend on to train, deploy, and scale AI, and this facility increases our flexibility to do that at speed and at scale,” Nscale Chief Executive Josh Payne said in a statement reported by the Journal.

A consortium of banks including J.P. Morgan, Goldman Sachs, Morgan Stanley, MUFG, RBC Capital Markets, Bank of America, Credit Agricole CIB, Deutsche Bank, Mizuho, SMBC, TD Securities and KeyBank syndicated the revolving credit facility, according to the company. The startup said the facility would inject flexible liquidity to accelerate its data-center buildout plans.

Nscale operates a network of data centers in Europe and the U.S. either on its own or through partners, according to its website. The company is also seeking to expand AI infrastructure in Asia. Clients reserve graphics processing units (GPUs) — chips that accelerate the millions of computations required in AI training — to tap Nscale’s data centers.

Backed by Nvidia, Dell Technologies and Nokia, Nscale raised $2 billion earlier this year at a $14.6 billion valuation as investors continued to see promise in AI infrastructure. The closure of the revolving credit facility comes nearly two months after Nscale secured $790 million in financing to build out a data center project in Norway. The company said in May that it would channel those funds to expand an AI data center just outside Narvik in northern Norway that is expected to include more than 30,000 Nvidia Rubin processing units.

Financing arrangements to support the buildout of AI infrastructure have raised concerns among some investors in recent months that companies might be taking on too much debt and overspending on a technology that hasn’t yet yielded the expected benefits, potentially creating a market bubble that is waiting to burst, according to the Journal’s report. Payne said the revolving credit facility showed that global investment banks had confidence in Nscale and its capital structure and plans to build out data centers.