Nvidia-backed British cloud provider Nscale is considering delaying a New York listing valued at up to $35 billion until 2027 after a technology-stock sell-off, The Telegraph reported on 10 November. The London-based data-centre developer filed to go public in September. Its executives are now assessing whether to pause the flotation.
Key points
- Nscale executives are considering a delay until 2027, with no decision made as of 10 November.
- The $35 billion figure compares with a $14.6 billion valuation following Nscale’s March funding round.
- Microsoft has declined an option to expand its computing agreement with Nscale at a Texas data centre.
Nscale weighs timing of New York flotation
Nscale had planned to begin trading in New York imminently, but US stock-market rules would require it to publish new quarterly financial results if it waited beyond the available window, The Telegraph reported. The company had made no decision on a delay as of 10 November. Its executives had continued to pursue the flotation through the preceding sell-off, during which the newspaper put losses across US stocks at $3 trillion.
The company sought about $3.5 billion in funding when it filed for an IPO in September, including $2 billion from Nvidia, Reuters reported. Nscale plans to trade on the New York Stock Exchange under the symbol “NSCL”. Reuters also reported that Nscale did not immediately respond to its request for comment outside regular business hours on the possible delay.
Another AI company is pursuing a different listing timetable. Anthropic filed an updated IPO prospectus on 10 November seeking a valuation of up to $1.4 trillion, Reuters reported. AI Affairs previously reported on Anthropic’s November IPO plans as other AI-linked listings stalled.
The $35 billion figure and Nscale’s March valuation
Nscale raised $2 billion in a March Series C round that valued it at $14.6 billion, FourWeekMBA reported. By its arithmetic, the $35 billion figure associated with the proposed listing is about 2.4 times that earlier valuation.
Some investors believed recent market conditions could leave Nscale worth less than half the valuation of up to $35 billion it had been seeking. Shares in CoreWeave, another AI-focused data-centre company, had fallen by more than a third in the month to 10 November, the newspaper reported. Nscale is among the AI infrastructure developers known as neoclouds, which have taken on substantial debt to fund construction.
Microsoft’s Texas option and Nscale’s contracts
Microsoft declined an option to rent more computing power under its existing agreement with Nscale at a Texas data centre, Reuters reported. AI Affairs reported that Microsoft declined an option to more than double Nscale’s Texas contract. The decision concerned additional capacity under an option, rather than the existing agreement.
Microsoft had also withdrawn from a separate arrangement for space at Nscale’s Loughton site in Essex, The Telegraph reported. That site had experienced repeated delays. The two Microsoft decisions concern different locations: the declined option was in Texas, while the withdrawn arrangement was at the British site.
FourWeekMBA reported that Nscale’s September IPO filing listed about $2.6 billion of active contract value as of 31 August 2026. The filing put active and contracted total contract value at about $103.4 billion under long-term take-or-pay agreements, which require customers to pay for committed capacity. For the six months to 30 June 2026, the filing recorded $140.6 million in revenue and a net loss of $1,020.1 million.
The same filing described Microsoft statements of work providing for payments to Nscale of up to approximately $43.8 billion through December 2033, FourWeekMBA reported.
