Nscale secures a $900 million revolving credit facility to finance its data center expansion.

      Nscale has secured a $900 million revolving credit facility, which it plans to utilize to accelerate the development of its data centers across the US, Europe, and Asia-Pacific, as announced by the company on Tuesday. The London-based firm, which raised $2 billion in a Series C funding round at a valuation of $14.6 billion in March, is accumulating debt nearly as rapidly as it has raised equity.

      The facility was organized through a syndicate of twelve banks, indicating significant confidence. Among the participants are J.P. Morgan, Goldman Sachs, Morgan Stanley, MUFG, RBC Capital Markets, Bank of America, Crédit Agricole CIB, Deutsche Bank, Mizuho, SMBC, TD Securities, and KeyBank, a mix typically associated with well-established borrowers rather than a company founded just two years ago.

      A revolving credit facility operates similarly to a corporate overdraft, allowing a company to withdraw, repay, and withdraw funds again as necessary. This flexibility is more beneficial for Nscale than receiving a single lump sum, as demonstrated by the $790 million it raised for its Narvik site in Norway, which highlighted its previously project-specific financing approach.

      Additionally, a revolver offers the advantage of increasing available capital without diluting the stakes of existing shareholders, an important factor for a company that has already sold significant partial ownership in three rounds over 18 months.

      The urgency of funding is particularly pressing for entities establishing AI data centers. Investments in Nvidia chips, energy contracts, and construction must often be made well before revenue from leasing that capacity materializes, and a revolver is tailored to bridge this gap.

      Nscale did not reveal the pricing, duration, or maturity date of the facility, nor whether the borrowing is secured against its chips or property. These details typically influence the actual cost of the liquidity, leaving the overall expense of the deal unclear.

      “The closing of this revolving credit facility with key global investment banks reflects real institutional confidence in our platform, capital structure, and team,” remarked Josh Payne, Nscale’s CEO and founder. He noted that this facility enhances the company’s ability to build “at speed and at scale” for technology firms that develop and deploy extensive AI models.

      This credit line supplements an impressive series of funding efforts. Nscale recently completed a $1.1 billion Series B and a $2 billion Series C, both touted as the largest of their type in European history, along with a $1.4 billion delayed-draw term loan secured by its GPUs.

      This funding surge has transformed the company—barely two years old—into one of the most capitalized private enterprises in the AI sector. Nscale, which began as a cryptocurrency mining operation before shifting to AI computing, attracted investments in its Series C from Nvidia, Dell, Lenovo, and trading firms like Citadel and Jane Street, several of which are now fueling Europe’s data-center expansion.

      The allocation of funds is clear; Nscale has signed a 1.35 GW letter of intent with Microsoft for a West Virginia campus and committed €695 million to a Portugal site that will supply Nvidia chips to Microsoft, necessitating hundreds of thousands of GPUs and the kind of flexible funding a revolver provides.

      Founded in 2024 by Australian entrepreneur Payne, Nscale positions itself as a full-stack AI cloud, integrating software, computing, and energy into one cohesive offering. It operates data centers across Europe, North America, and Asia, many located near affordable Nordic hydropower sources.

      The company has not specified how much of the $900 million has been utilized thus far or what it will prioritize funding. Given the past year's developments, the more challenging question appears to be not where the funds will be allocated, but how swiftly Nscale can deploy them.