By Finwire
Publication Date: 2026-11-05 05:45:00
British AI infrastructure provider Nscale has lost out on a potential deal with Microsoft worth tens of billions of dollars. Microsoft has opted not to exercise an option to more than double capacity under an existing agreement for computing power at a data center in Texas. The Financial Times reports, citing three sources familiar with the matter.
The decision means Nvidia-backed Nscale must find new customers for the available capacity to avoid missing out on future billions in revenue. The setback comes as the company prepares for a stock market listing with a potential valuation of $35bn.
Nscale has previously suffered setbacks when Microsoft pulled out of a $3bn agreement for computing capacity in Britain’s Essex. The company’s major data center project in West Virginia, which is tied to a $45bn agreement with Anthropic, has also been delayed and faced local opposition.
Both Microsoft and Nscale declined to comment.
In the first half of 2026, Nscale…