Nscale secures $155m funding to expand AI compute infrastructure
Deal News | Dec 09, 2024 | UK Tech Funding
In a significant funding achievement, London-based AI hyperscaler Nscale has secured $155 million in a Series A round, marking one of the largest of its kind this year in the UK. The funds are aimed at supporting the expansion of Nscale's greenfield data centres across Europe and North America, with a target increase in capacity from 300MW to 1.3GW. The company's innovative approach involves using closed-loop direct liquid cooling technology to enhance data centre performance while reducing environmental impact. Additionally, Nscale plans to launch a public cloud service offering purpose-built AI inference and training solutions by early next year. This funding round was led by Sandton Capital Partners, along with participation from Kestrel 0x1, Blue Sky Capital Managers Ltd, and Florence Capital. The investment emphasizes Nscale's potential in providing bespoke AI infrastructure solutions at any scale, backed by strong partnerships and efficient unit economics. The drive is spearheaded by CEO Joshua Payne, who highlights the company's unique position in the rapidly scaling AI market.
Sectors
- Artificial Intelligence
- Data Centers
- Green Technology
Geography
- United Kingdom – Nscale is based in London and the funding round marks one of the largest Series A investments in the UK this year.
- Europe – Nscale aims to expand its data centre deployment and scale infrastructure across Europe.
- North America – Nscale plans to grow its data centre presence in North America as part of its expansion strategy.
Industry
- Artificial Intelligence – Nscale operates in the artificial intelligence sector by developing infrastructure to support AI platforms and applications.
- Data Centers – Nscale is involved in designing and expanding data centre capacity to accommodate AI superclusters and platforms.
- Green Technology – Nscale employs environmentally-friendly cooling technology to enhance data centre efficiency, aligning with green tech initiatives.
Financials
- $155 million – Amount raised by Nscale in its Series A funding round.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Nscale | Target company | Company | A London-based AI hyperscaler focused on developing data centres for AI infrastructure. |
| Sandton Capital Partners | Lead investor | Company | Investment firm leading the $155m Series A funding round. |
| Kestrel 0x1 | Investor | Company | Participant in the Series A funding round for Nscale. |
| Blue Sky Capital Managers Ltd | Investor | Company | Participant in the Series A funding round for Nscale. |
| Florence Capital | Investor | Company | Participant in the Series A funding round for Nscale. |
| Joshua Payne | CEO | Person | CEO of Nscale and former founder and chairman of Arkon Energy. |
| Philippe Sachs | Chairman | Person | Kestrel general partner and chairman of Nscale. |
| Rael Nurick | Co-Founder | Person | Co-Founder at Sandton Capital Partners involved in Series A investment. |