WhiteFiber Secures $865M, 10-Year AI Data Center Deal with Nscale

The company announced that it has signed a 10-year colocation deal with Nscale, covering 40 megawatts of capacity at its NC-1 AI data center campus in North Carolina. The agreement is valued at an estimated $865 million, making it a significant commitment for both companies and a notable win for WhiteFiber as it scales its AI-focused operations.

The deal represents a key step forward for WhiteFiber as it strengthens its position in the rapidly expanding AI infrastructure market. Under the agreement, Nscale will become an anchor customer at the NC-1 campus, with the 40 MW of critical IT load expected to be delivered in two 20-MW phases. The capacity will be used to support large-scale AI computing workloads, reflecting a broader industry shift toward high-density facilities purpose-built for advanced computing needs.

The contract runs for an initial 10-year term and includes recurring colocation revenue with built-in annual rate increases. Power and certain operating costs will be passed through to the customer, a structure that aligns with standard practices for large-scale data center deployments. For WhiteFiber, the long-term nature of the agreement provides revenue visibility and stability, while giving Nscale dedicated access to infrastructure over an extended period.

WhiteFiber says the NC-1 campus has been designed from the ground up to support AI and high-performance computing workloads. The facility is capable of handling very high rack densities and incorporates advanced cooling and resilient power systems tailored to modern AI hardware. As demand continues to grow for graphics processing units and other compute-intensive technologies, facilities with these capabilities are becoming increasingly sought after.

The company has also pointed to North Carolina’s strategic appeal as a data center location. The state offers access to scalable power, established infrastructure, and connectivity suited to enterprise deployments. WhiteFiber views the NC-1 campus as a core asset within its broader infrastructure strategy, with potential to expand capacity beyond what has already been contracted.

From a funding perspective, WhiteFiber has indicated that it has already committed substantial equity to developing the NC-1 site and is pursuing financing options to support both the completion of the project and future growth initiatives. Securing a long-term agreement with Nscale strengthens the company’s case by demonstrating concrete customer demand for its AI-ready data center offerings.

For Nscale, the colocation arrangement provides access to purpose-built AI infrastructure without the need to build and operate a large facility from scratch. By using WhiteFiber’s campus, Nscale can deploy computing capacity that aligns with its service plans while maintaining flexibility across hardware and software layers. Although specific end customers have not been disclosed, the deployment is described as supporting enterprise-grade, global technology use cases.

The agreement comes at a time when competition in the data center sector is intensifying, driven largely by surging AI-related demand. As AI workloads grow in scale and complexity, companies are increasingly looking beyond traditional cloud environments, turning to dedicated colocation and hybrid infrastructure models. Facilities capable of supporting high-density power and cooling are becoming central to this shift.

WhiteFiber’s deal with Nscale reflects this broader trend, showing how long-term colocation agreements are emerging as a keyway to match AI-driven demand with specialized infrastructure supply. By locking in a multi-year commitment at its NC-1 campus, WhiteFiber further positions itself as a provider focused on next-generation computing needs rather than traditional data center models.

The NC-1 deployment is expected to serve as an important reference point for WhiteFiber as it looks to expand its AI infrastructure footprint. Successfully delivering on the Nscale agreement could play a meaningful role in shaping market confidence as the company continues to execute its growth strategy in an increasingly competitive landscape.