Nscale, the AI-engineered HyperScaler, revealed that it has inked a USD $1.4 billion Delayed Draw Term Loan agreement.
GPUs (the “GPU DDTL”) support the deal. With assistance from other asset managers and banks, the GPU DDTL was led by funds managed by LuminArx Capital Management, Blue Owl, and PIMCO. In order to provide service under several contracts, the funds will be utilized to buy GPU infrastructure.
Nscale, an AI-native infrastructure platform with its headquarters in Europe and operations worldwide, offers managed software, compute, networking, storage, and AI services in colocated and Nscale-owned data centers in a vertically integrated manner.
As Nscale develops extensive GPU deployments to meet the growing enterprise demand, this funding directly supports the company. Because of its well-located data centers, which use some of the world’s most affordable renewable energy, Nscale is able to meet strict regulatory standards while passing these substantial savings on to its clients.
By enabling Nscale to use debt to finance a portion of GPU infrastructure acquisitions, the GPU DDTL will help Nscale expand the deployment of large-scale AI infrastructure throughout Europe. The loan offers additional liquidity for pipeline clusters and funds for capital expenditures related to several GPU clusters for clients with completed contracts.
Josh Payne, Founder and CEO of Nscale, said: “We’re seeing massive demand for AI infrastructure to support the needs of businesses and consumers. This GPU debt financing is a key step in meeting that demand – backing infrastructure that can be delivered faster and more cost-effectively than industry norms, whether that’s large-scale hubs in Norway to smaller metro clusters built for low-latency workloads.”
In order to continue expanding its global presence, Nscale has announced this announcement after reaching significant milestones over the past year, such as contracts for several large-scale compute clusters worldwide, growing its leadership team, and acquiring Future-tech, a European data center engineering consultancy.
In relation to this debt raise, Goldman Sachs & Co. LLC served as Nscale’s sole placement and structuring agent.
