WhiteFiber Partners with Nscale for Major AI Data Center Agreement Worth $865 Million

WhiteFiber and Nscale Enter Long-Term Colocation Agreement

In a significant step within the technology sector, WhiteFiber, Inc. (Nasdaq: WYFI), a progressive provider of data center and colocation services, has announced a landmark 10-year colocation agreement with Nscale Global Holdings. This partnership is not just a leap forward for both companies but represents a transformative moment for the artificial intelligence (AI) and high-performance computing (HPC) arena.

Overview of the Agreement

The agreement ensures the delivery of 40 megawatts (MW) of critical IT load at WhiteFiber’s NC-1 data center campus located in Madison, North Carolina. The total contract value projected over the ten-year span is approximately $865 million. This figure includes annual rate escalators and necessary installation services but excludes additional expenses like electricity costs that will be passed on to Nscale.

Nscale, recognized for its remarkable infrastructure catering specifically to AI applications, is set to utilize this capacity to enhance the computing power for its global clientele, which includes investment-grade technology customers. WhiteFiber's CEO, Sam Tabar, emphasized the meticulous approach taken in selecting Nscale as a partner, citing its proven experience in hyperscaler deployments as a critical factor in the decision-making process.

Financing and Construction Plans

WhiteFiber is currently in discussions with several top-tier lenders, exploring multiple financing avenues to accommodate both the immediate construction needs at NC-1 and its ambitious growth strategies. The anticipated financing facility will likely incorporate a flexible structure, potentially leading to additional capital access that allows for further expansion across WhiteFiber’s development portfolio.

With an investment of roughly $150 million in equity into the NC-1 site so far, the company has taken significant steps to minimize risks associated with debt financing. WhiteFiber expects to formalize a credit facility in the early part of 2026, aiming to secure financing terms favorable to their operational costs.

Strategic Considerations

The agreement solidifies WhiteFiber's strategy to meet the demanding specifications of hyperscalers and positions the NC-1 facility as a crucial player in the AI infrastructure market. The planned construction will exhibit a Tier 3-equivalent design, proficient in supporting ultra-high-density workloads and assuring robust power distribution and cooling systems. According to company projections, the facility will start billing for its initial delivery of 20 MW on April 30, 2026, followed by the second phase by May 30, 2026.

Billy Krasskopoulos, President of WhiteFiber, commented on the partnership, stating it showcases their effective retrofit model, enabling rapid deployment that aligns with leading AI providers’ expectations. He also conveyed optimism about unlocking additional development opportunities as they secure their anchor tenant for NC-1.

Future Outlook

WhiteFiber's collaboration with Nscale is paving the way for greater demand in AI services and coincides with their broader vision of expansion. The strategic engagement is outlined to draw further interest for additional campuses set to open in the latter half of 2026 and throughout 2027. As the reliance on AI technologies intensifies in various sectors, this agreement positions WhiteFiber at the forefront of fulfilling that demand.

For more detailed updates about WhiteFiber and their ongoing projects, visit www.whitefiber.com.