2.5%
Nscale's IPO filing: $103.4 billion contracted, $2.6 billion switched on
Only about 2.5% of Nscale's contracted business was switched on at the end of August. That's from the AI data center firm's own US IPO filing.
What happened
Nscale filed to list on the New York Stock Exchange in September. Its filing lists $103.4 billion in active and contracted value. Only $2.6 billion of that was active on August 31. In the first half of 2026, revenue was $140.6 million. The net loss was $1.02 billion. Contracts with Microsoft and Anthropic are worth up to about $88 billion combined.
Bloomberg reports some investors want an IPO valuation of $16 to 19 billion. Nscale has sought about $30 billion. Separately, the Telegraph reports Microsoft pulled out of a planned Nscale site in Essex. Grid officials reportedly said power may not arrive until the 2030s. Nscale says its relationship with Microsoft remains strong and long-term.
Read the transcript
2.5%. That's how much of Nscale's contracted business is actually switched on. Its US IPO filing lists $103.4 billion in contracts. Only $2.6 billion of that was active at the end of August. In the first half of 2026, revenue was $140.6 million. The net loss was $1.02 billion. Now Bloomberg reports some investors want a $16 to 19 billion valuation. Nscale has sought about $30 billion. And the Telegraph reports Microsoft pulled out of a planned site in Essex. Grid power there reportedly may not arrive until the 2030s. Nscale says the relationship remains strong. We think the gap between signed and switched on is the real story. Power, not demand, is the limit.
That's your byte. Sources at sixtybytes.com.
Sources
- SEC EDGAR — Nscale Ltd. Form S-1 registration statement
- Bloomberg — AI Cloud Firm Nscale Faces Investor Pushback Over IPO Valuation
- Reuters — Microsoft pulls out of UK data center deal with Nscale, Telegraph reports
Not financial advice.
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