London-based Nscale, a British hyperscaler purpose-built for AI workloads, has secured a €1.1 billion ($1.4 billion) Delayed Draw Term Loan (DDTL) backed by GPU infrastructure. The financing is designed to support multiple signed service contracts and accelerate the rollout of large-scale AI compute capacity across Europe.
The GPU-backed facility was led by funds managed by PIMCO, Blue Owl, and LuminArx Capital Management, with additional participation from other asset managers and banks. The debt financing follows Nscale’s €146 million Series A in late 2024 and a €936 million Series B in September 2025.
Scaling AI infrastructure to meet surging demand
According to Founder and CEO Josh Payne, demand for AI infrastructure from both enterprises and consumers continues to rise sharply. He described the GPU debt financing as a strategic move to scale infrastructure more quickly and cost-effectively than traditional industry approaches.
Nscale’s expansion strategy includes both large-scale AI hubs in Norway and smaller metro-based clusters optimized for low-latency workloads. The company positions itself as an alternative to global hyperscalers by focusing on vertically integrated AI-native infrastructure tailored specifically for training, fine-tuning, and high-performance inference workloads.
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Growing momentum for European AI infrastructure
Across Europe, investor appetite for AI compute platforms has been increasing. In 2025, Finland-based DataCrunch raised €55 million to expand its high-performance compute offering, while London-based NexGen Cloud secured €41 million to strengthen sovereign AI infrastructure services.
Together, those disclosed rounds totaled €96 million, highlighting rising interest in European AI infrastructure providers. Against this backdrop, Nscale’s €1.1 billion debt facility significantly increases the scale of capital flowing into European AI compute capabilities.
Funding GPU clusters and enterprise contracts
The newly secured DDTL will primarily finance GPU infrastructure purchases tied to executed customer agreements, while also providing additional liquidity to support upcoming cluster deployments.
Nscale operates a vertically integrated model, combining compute, networking, storage, managed software, and AI services through owned and colocated data centers. Its facilities are strategically located in regions offering access to low-cost renewable energy, enabling the company to improve efficiency and pass savings on to customers.
Over the past year, Nscale has announced multiple global compute cluster contracts, expanded its leadership team, and acquired Future-tech, a European data center engineering consultancy, further strengthening its operational capabilities.
About Nscale
Founded in 2024, Nscale is an AI-focused hyperscaler delivering high-performance infrastructure for training, fine-tuning, and compute-intensive AI workloads. Through vertically integrated data centers and optimized software stacks, the company aims to provide scalable, efficient, and sustainable AI infrastructure for enterprise customers across Europe.
