Nscale locks in €1.1 billion to fuel AI infrastructure boom
London-based hyperscaler Nscale, engineered specifically for AI infrastructure, has secured a landmark €1.1 billion Delayed Draw Term Loan (DDTL) to deploy large-scale GPU clusters across Europe. The facility, backed by a dedicated GPU DDTL structure, will fund the purchase of advanced GPU hardware to serve a growing pipeline of enterprise and cloud-scale AI contracts.
The GPU-focused DDTL is led by funds managed by PIMCO, Blue Owl, and LuminArx Capital Management, alongside participation from additional asset managers and banks. This substantial debt package follows Nscale‘s rapid equity fundraising trajectory: a €146 million Series A in late 2024 and a record-setting €936 million Series B in September 2025.
Rising demand for European AI compute capacity
Founder and CEO Josh Payne highlighted the scale of demand reshaping the European compute landscape. “We’re seeing massive demand for AI infrastructure to support the needs of businesses and consumers. This GPU debt financing is a key step in meeting that demand – backing infrastructure that can be delivered faster and more cost-effectively than industry norms, whether that’s large-scale hubs in Norway to smaller metro clusters built for low-latency workloads.”
Nscale‘s strategy combines hyperscale AI data centers in energy-efficient regions such as Norway with distributed metropolitan clusters tailored for latency-sensitive applications, including real-time AI inference, generative AI services, and advanced machine learning workloads.
Strengthening Europe’s AI and cloud ecosystem
The new facility positions Nscale as one of Europe’s most heavily capitalised independent AI hyperscalers at a time when demand for GPU capacity continues to outstrip supply. By using a DDTL structure, the company can draw down capital in stages, aligning GPU procurement with contract ramp-up and optimising both cost of capital and deployment speed.
The deal underscores growing investor conviction in Europe’s emerging AI compute ecosystem, where specialised providers are racing to build alternatives to US-centric cloud giants. With this financing, Nscale aims to accelerate delivery of scalable, cost-efficient AI-ready infrastructure for enterprises, startups and public-sector organisations across the continent.