Nscale files for US IPO targeting a valuation up to $35bn

In short: UK data centre company Nscale has filed to go public in the US, aiming for a valuation of up to $35bn.

What happened

Nscale, a London based company that runs data centres, has filed paperwork for an initial public offering, or IPO. An IPO is when a company sells shares to the public for the first time, like opening up part ownership to outside investors.

People familiar with the plans said Nscale is targeting a valuation of up to $35bn. The company plans to list on the New York Stock Exchange while keeping its legal home in the UK.

Nscale said it reported a net loss of $1bn on $141mn in revenue in the first half of the year. The Financial Times reported that much of the loss was tied to non-cash charges, which are accounting costs that do not mean money left the company that day.

The company has grown quickly since being spun out of crypto mining infrastructure group Arkon Energy in 2024. It has raised about $3.7bn in equity and more than $5bn in debt, according to Dealroom, and it has backing from companies including Nvidia.

A key driver is demand for computing power for AI. Nscale signed a deal last month with Anthropic to rent capacity at its West Virginia site, worth up to $45bn over six years. Data centres are like giant warehouses for computers that run online services.

Why it matters

This filing is a test of how confident investors still feel about the boom in AI related infrastructure, especially after some industry leaders called for slowing AI development. If big customers pull back on spending, data centre builders could face tougher conditions.

Source: Financial Times