Nscale Expands Partnership with Microsoft to Deploy 200,000 Nvidia AI Chips
British artificial intelligence company Nscale has announced an expanded agreement with Microsoft to deploy approximately 200,000 Nvidia AI chips across its data centers in Europe and the United States, strengthening its role in powering large-scale AI infrastructure globally.
While Nscale did not disclose the financial details of the deal, the Financial Times reported that, based on similar contracts, the partnership could generate up to $14 billion in revenue for the AI startup. The deployment will be executed in collaboration with Dell Technologies, according to Nscale’s statement on Wednesday.
Accelerating AI Infrastructure Across Regions
Under the agreement, Nscale will begin supplying Nvidia GPUs to Microsoft through its data centers in Texas and Portugal starting next year. The company also revealed plans to expand its Texas operations in the coming years to meet the increasing demand for AI computing power.
This large-scale deployment represents one of the most ambitious efforts yet to build AI-ready infrastructure in partnership with a hyperscaler, bolstering Microsoft’s global AI capabilities as competition intensifies among cloud providers and AI startups.
Building on Previous Commitments
The new deal builds upon Nscale’s earlier announcement of a multi-year joint venture with Norway’s Aker, which includes supplying 52,000 Nvidia GPUs from Nscale’s hyperscale AI campus in Narvik, Norway, to Microsoft.
That project marked one of Europe’s largest AI infrastructure developments, focusing on energy-efficient and sustainable AI data processing. The expanded agreement now extends that momentum to North America and Southern Europe, positioning Nscale as a key enabler of Microsoft’s global AI infrastructure expansion.
Strategic Collaboration for the AI Era
By combining Microsoft’s cloud and AI services, Dell’s enterprise computing expertise, and Nvidia’s advanced GPU technology, the partnership is set to deliver unprecedented AI computing performance to enterprises and developers worldwide.
The move also reinforces the growing importance of AI supply chain partnerships that ensure both scalability and energy efficiency, critical as data centers face mounting pressure to meet surging AI demand while maintaining sustainability targets.
Outlook
Nscale’s collaboration with Microsoft and Dell underscores the escalating race to secure AI infrastructure capacity. With deployment slated to begin next year, the project could reshape the AI computing landscape across both continents and significantly expand Nscale’s footprint in the global AI ecosystem.
