Data centre builder Nscale has secured a $1.4bn loan to fund the purchase of GPUs. The financing comes from lenders including Blue Owl Capital, Pacific Investment Management and Luminarx Capital Management.
The delayed-draw term loan (a vehicle which allows borrowers to draw down funds in stages) is an asset-backed loan tied to the GPUs Nscale will purchase with the funds. Goldman Sachs worked with Nscale to secure the debt facility.
Other AI infrastructure companies have also turned to asset-backed financing deals to fund their buildouts. Elon Musk’s xAI made a similar deal to buy Nvidia GPUs.
Nscale is currently working on data centre projects in five countries: the UK, Portugal, the US, Iceland and Norway.
The company raised a $1.1bn Series B in November last year and is reported to be in talks with JPMorgan to raise another $2bn in equity financing.
Nscale will use the new debt financing to purchase Nvidia chips to use at its sites in Europe.
The company employs 300 people and has made a number of notable hires in recent weeks, bringing on board Nidhi Chappell, formerly at Microsoft, as its president of AI infrastructure, and Lauren Hurwitz, who was at Palantir, as its COO.
Nscale has also sought to bolster its engineering department by acquiring Future-tech, a data centre engineering consultancy, in December last year. Nscale says the acquisition brought on board around 60 employees including engineers, project managers and technical specialists.
