Nscale and Anthropic are discussing the construction of a new data center for $45 billion

British company Nscale is in talks with Anthropic about a deal worth approximately $45 billion to provide computing power for artificial intelligence.

The agreement involves the construction of a second facility at the Monarch campus in West Virginia, USA. The building will provide 460 megawatts of computing power and will be equipped with new Nvidia Vera Rubin AI chips. Additionally, Anthropic has obtained an option to lease a third building at the campus.

According to documents filed in preparation for Nscale's initial public offering, the company already has agreements with Anthropic for infrastructure worth up to $44.6 billion. The new contract could strengthen Nscale's position ahead of its stock market debut. The company expects a valuation of around $30 billion, although some investors are calling for a lower target valuation.

Anthropic has become one of the largest clients of data center infrastructure providers. In addition to its collaboration with Nscale, the company signed a $50 billion agreement with Fluidstack, a $10 billion deal with Volta Infrastructure Holdings, and a $45 billion agreement with SpaceX.

Once completed, the Monarch campus will be able to provide more than 8 gigawatts of total energy capacity. Initially, Microsoft planned to lease part of the project, announcing in March that it had signed a letter of intent. However, the company dropped the site in the summer, after which Anthropic became the tenant.

Anthropic is expanding its computing capacity amid growing demand for its AI products and preparation for a potential stock market debut in the coming months.

Nscale filed documents for a public stock offering in the US in September. Last month, the company raised $3.36 billion in a funding round ahead of its IPO. The round was led by Third Point, with other participants including Nvidia, Apollo Global Management, Citadel, Hudson Bay Capital, and the Abu Dhabi Investment Council.

Source: Bloomberg