Nscale IPO: Nvidia-backed AI Cloud Provider Plans US Listing, Valuation Could Reach $35 Billion
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Nscale's highest-profile project is in West Virginia, where the company has signed a six-year compute lease agreement valued at up to $45 billion with Anthropic, which it plans to serve through a flagship data center currently under construction. The campus is expected to begin phased operations by late 2027, accompanied by the construction of a 2-gigawatt natural gas power facility, with total construction costs potentially reaching around $70 billion. This contract provides Nscale with substantial long-term revenue visibility but also highlights the capital-intensive nature of its business model. Data centers require enormous upfront capital investment to deploy power, cooling, and compute infrastructure, while revenue is typically recognized gradually once capacity is delivered. If construction suffers delays, power supply proves insufficient, or customers adjust their compute demand, the company could simultaneously face rising costs and deferred revenues.Financial data already reflects this pressure. According to the Financial Times, Nscale generated approximately $141 million in revenue in the first half of this year, with a net loss of nearly $1 billion, driven in part by non-cash items. Compared to the $35 billion valuation the company is seeking, its current revenue scale remains small, meaning investors are effectively discounting compute capacity that has not yet...
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