Latest news with #Nscale
Calgary Herald
01-05-2025
- Business
- Calgary Herald
Large AI projects present US$1.8 trillion capital pool for private credit
Article content The artificial intelligence boom is driving business to private credit firms, as tech companies seek funding to build data centres filled with computing chips to operate AI models. Article content Carlyle Group Inc. expects more than US$1.8 trillion of capital will be deployed by 2030 to meet that demand, and a chunk of that can be taken up by the private markets, chief executive Harvey Schwartz recently wrote in a shareholder letter. Article content Article content A slew of tech companies have already tapped private capital — both private equity and debt — to help build the physical infrastructure needed to support AI. Article content Startup Nscale is looking for US$2.7 billion, including a US$1.8 billion private credit loan, on the back of a pending ByteDance Ltd partnership. SoftBank Group Corp. has sought a US$16.5 billion loan to fund such investments in the United States. Meta Platforms Inc. is looking to raise billions in financing to develop data centres domestically, with Apollo Global Management Inc and KKR & Co. as potential investors. Article content Article content Private lenders have been searching for avenues outside of traditional corporate lending for growth and tap into areas of credit that can come with higher ratings. Financing AI infrastructure is one of those paths, according to market participants. Article content Article content Ares Management Corp. has estimated private investors could fund about US$5.5 trillion of capital across debt and equity in global infrastructure, including AI-focused projects, through 2035, according to a report this year. Article content Cloud computing firms, and tech companies generally looking to develop AI programs, need an immense amount of capital. That can come in the form of investment-grade loans backed by microchips or data centre leases with contracts tied to companies with top-tier credit scores.
Yahoo
28-04-2025
- Business
- Yahoo
Startup Nscale Aims for $2.7 Billion AI Play -- Backed by Nvidia Chips and a ByteDance Mega Deal
Nscale, a London-based startup founded just 11 months ago, is moving aggressively to capitalize on the AI boom. The company is seeking to raise about $2.7 billion to build global data centers powered by Nvidia (NASDAQ:NVDA) chips, according to offering documents seen by Bloomberg. The proposed financing package includes a $1.8 billion private credit deal led by Goldman Sachs and another $900 million in preferred equity and convertible shares. Nscale's management is betting that surging AI infrastructure demand will support rapid growth, even as recent market volatility tied to Trump's new tariff measures poses fresh headwinds. Discussions with investors began before the latest financial shocks, and plans may evolve depending on market conditions. Warning! GuruFocus has detected 3 Warning Signs with NVDA. A key part of Nscale's strategy hinges on an expected $2 billion contract with ByteDance, the Chinese owner of TikTok, which would rent high-end Nvidia GB200 chips installed at Nscale facilities in Norway. ByteDance has acknowledged discussions but indicated the size of the deal may be overstated. Nevertheless, the arrangement highlights a growing trend where Chinese tech companies bypass U.S. chip restrictions by leasing compute power abroad. To strengthen its case with lenders, Nscale is offering collateralized loans backed by Nvidia chips, data center leases, and customer contracts, aiming for a spread even tighter than recent private deals in the AI space. Pricing remains in flux, but the structure could offer investors a compelling risk-reward profile if demand holds up. Still, concerns are building about whether the AI infrastructure rush can sustain its current pace. Nscale's nearest rival, Coreweave, recently scaled back its IPO plans after investor enthusiasm cooled, and Nscale's current operational capacity about 40 megawatts across Norway and Texas remains much smaller than Coreweave's 360 megawatts. Nscale, founded by energy entrepreneur Josh Payne and backed by Sandton Capital Partners following a $155 million Series A, is now racing against time. With five new sites in the pipeline and mounting scrutiny on AI spending, the company's ability to execute swiftly and lock in anchor customers like ByteDance will be critical to determining whether it becomes a major new player or just another ambitious AI story that burned bright and faded fast. This article first appeared on GuruFocus.
Bloomberg
28-04-2025
- Business
- Bloomberg
AI Startup Nscale Chases ByteDance Deal and $1.8 Billion in Debt
Nscale, a startup that is less than a year old, is already trying to raise about $2.7 billion to build artificial intelligence infrastructure on the back of a pending partnership with ByteDance Ltd., the Chinese owner of TikTok, according to an offering document seen by Bloomberg. The money, if Nscale follows through with the proposal, would allow the London-based company to build out data centers around the globe — filled with Nvidia Corp. chips — that would be rented out by companies such as ByteDance, in order to train and operate their AI models.
Yahoo
26-03-2025
- Business
- Yahoo
InfraPartners and Nscale collaborate on AI data centre expansion in Norway
InfraPartners, a digital infrastructure company, and hyperscaler Nscale have entered into an alliance to double the capacity of an AI data centre in Glomfjord, Norway. This project will increase the capacity of the data centre from 30MW to 60MW, with the expanded facility expected to be operational by the second quarter (Q2) of 2025. The facility will host the latest generation of AI-optimised graphics processing units (GPUs). The centre will use 100% renewable hydroelectric energy for its operations and liquid cooling techniques to minimise environmental impact. InfraPartners CTO Harqs Singh said: 'InfraPartners has developed the first fully modular data centre for AI workloads. We are changing the way data centres are built. Our approach secures supply chains, drives standardisation, accelerates site deployment, and offers design flexibility to accommodate future GPU technology roadmaps. "We are thrilled to partner with Nscale to deploy a sustainable data centre in Glomfjord. By partnering with us, Nscale will benefit from a globally standardised design, flexibility to deploy different types of GPUs, and faster time to revenue.' Manufacturing the facility off-site is expected to decrease the need for on-site labour and will expedite project timelines, resulting in cost reductions. Moreover, this method is more sustainable than traditional construction, as it improves resource efficiency and reduces on-site waste, stated InfraPartners. Nscale COO Alex Sharp said: 'Glomfjord offers an ideal location for an AI data centre. 'With an existing 30MW site and access to an abundance of hydroelectric power, this expansion to 60MW allows us to provide sustainable AI compute with European data sovereignty at a more affordable cost compared with competitors. "This facility represents a landmark step in creating scalable, sustainable AI infrastructure. As the first European hyperscaler, Nscale is ready to deliver AI compute at scale.' In December last year, YIT secured a €100m ($104.24m) contract with XTX Markets to build a new data centre in Kajaani, Finland. "InfraPartners and Nscale collaborate on AI data centre expansion in Norway" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
16-02-2025
- Business
- Yahoo
AI experts warn electricity costs may stunt growth
The government must invest in long-term renewable energy if it wants to drive artificial intelligence (AI) growth in the East of England, experts have warned. AI is set to be at the forefront of a £2bn data centre in Loughton, Essex, as well as the chancellor's plans for 'Europe's Silicon Valley' between Cambridge and Oxford. Dr Haider Raza, a senior AI lecturer at the University of Essex, said it was a "very exciting time" for the region but stressed sustainable energy was needed for AI to flourish. A government spokesman said it was "exploring bold, clean energy solutions" to meet its AI ambitions while aligning with the UK's net zero goals. Prime Minister Sir Keir Starmer has outlined his vision to "unleash" AI, saying it offered "vast potential" for rejuvenating public services. The East of England was placed at the forefront of the government's plan for AI technology. Nscale pledged £2bn towards the Loughton data centre, due to be built by 2026. It was also hoped development in the Oxford-Cambridge growth corridor would boost the UK economy by up to £78bn, with AI playing a catalytic role. The plan has received backing from AstraZeneca, GSK and Astex, which is using AI to develop new cancer drugs at Cambridge Science Park. However, Dr Raza said "awful" electricity costs could stunt growth and said the government should invest in renewable energy to power AI centres. "We have to make data centres more efficient. This point is very, very important," he told the BBC. "Data centres are going to churn through a lot of energy, especially if they are processing too many jobs and mining large amounts of data. "There are so many aspects we have to manage. Considering the cost of electricity, it's very challenging financially." The energy issue could be worsened when using a generative AI system, according to a study by Dr Sasha Luccioni. The research found generative AI might use about 33 times more energy than machines running task-specific software. Concerns have also been raised by Kenso Trabing, whose AI firm Morphware builds its computer servers in the UK but runs them for a cheaper cost in South America. He said the country's industrial electricity price of £350 to £400 per megawatt hour (MWh) was unattractive when compared to £35 to £40 per MWh in Paraguay. The 35-year-old feared despite the UK being a leader in AI, Rachel Reeves' 'Silicon Valley' plan was unrealistic without cheaper electricity. "High energy costs are a significant barrier to innovation because they make it too expensive to test and experiment with new technologies," he added. "AI and blockchain projects require enormous computational power, which directly translates to high electricity consumption." Science minister Lord Patrick Vallance visited Cambridge Science Park after he was chosen by Reeves as the person to lead the Oxford-Cambridge growth corridor. He said the area could become "one of the most important innovation zones in the world". Cambridge City Council leader Mike Davey said AI must be used responsibly and in line with the authority's green ambitions. Concerns have been raised about the region being among the driest in the country, a factor that has previously hindered development. "We've got to make sure water is in place for the AI data centres, and we have to make sure the electricity grid is up to scratch," Davey said. However, he stressed AI "will be at the heart of what we do in the future". A Department for Science, Innovation and Technology spokesman said it recognised data centres faced "sustainability challenges such as energy demands and water use". He added: "Many newer data centres are already addressing these issues, using advanced cooling systems that significantly reduce water consumption." Follow East of England news on X, Instagram and Facebook: BBC Beds, Herts & Bucks, BBC Cambridgeshire, BBC Essex, BBC Norfolk, BBC Northamptonshire or BBC Suffolk. Oxbridge growth minister keen to 'get things done' What do government plans mean for Cambridge? Plans for £2bn AI centre and 750 jobs PM plans to 'unleash AI' across UK to boost growth Electricity grids creak as AI demands soar
