- Nscale is weighing a delay to its planned listing, The Telegraph reports.
- The IPO could value the AI cloud provider at about $35B, according to reports.
- Microsoft declined an option to expand its Texas capacity deal with Nscale.
Nscale, the Nvidia-backed AI cloud provider, is considering postponing its planned stock market listing until next year, The Telegraph reported on November 10, according to Reuters.
The London-based company’s executives are assessing whether to pause IPO preparations. The listing had been expected to value Nscale at around $35 billion.
IPO plans face a possible pause
Nscale filed for a New York Stock Exchange listing in September 2026 under the ticker ‘NSCL’, with Goldman Sachs, J.P. Morgan, and Morgan Stanley as underwriters. Its IPO filing showed first-half revenue of $140.6 million, up 1,252%, and a net loss of $1.02 billion. Its largest customer accounted for 52% of that revenue.
The company has raised heavily ahead of the listing. A $3.36 billion pre-IPO financing, led by Third Point, came on top of a $2 billion Series C in March 2026 at a $14.6 billion valuation. A $35 billion valuation would more than double that figure in under a year.
Founded in 2024 and led by CEO Josh Payne, Nscale builds and runs GPU data centres for AI developers and cloud customers. Nvidia is an investor and a supplier.
Microsoft decision adds pressure
Reuters reported that Microsoft had declined an option to expand its existing agreement with Nscale for more capacity in Texas, a decision first reported by the Financial Times.
The existing Texas contract and Nscale’s more than $103 billion in total contracted value are unaffected, and Nscale is in talks with several major customers for the remaining Texas capacity.
Microsoft’s statements of work with Nscale are worth up to about $43.8 billion through December 2033, excluding options, according to the filing. Weeks earlier, Microsoft had pulled out of an anchor deal at Nscale’s Loughton site in Essex after power-connection delays that stretched into the 2030s.
Nscale’s expansion relies on billions in financing
Nscale has also borrowed to fund construction. A $3 billion debt package includes up to $1.85 billion for a roughly 275 MW site in Ward County, Texas, and up to $1.2 billion for a 40 MW site in Madison County, North Carolina. The filing also lists $3.1 billion in convertible bonds, including $1 billion from Nvidia.
Investors are testing how much they will pay for AI infrastructure. CoreWeave, Nscale’s closest listed rival, has seen its shares fall more than 40% in a month. It carries $46.9 billion in debt against a $132.5 billion backlog.
A delay would not change Nscale’s contracts. It would show how much of a $35 billion price tag depends on a handful of customers renewing and expanding. Can a company with one customer at 52% of revenue win a public market that is already doubting AI capex?
