# Microsoft deals fresh blow to Nscale’s $35bn IPO ambitions

- URL: https://talkfuse.com/story/microsoft-deals-fresh-blow-to-nscales-35bn-ipo-ambitions/
- Published: 2026-11-05T13:16:38+00:00
- Updated: 2026-11-05T13:22:21+00:00
- Original publisher: City AM (publisher lean: Right)
- Original article: https://www.cityam.com/microsoft-deals-fresh-blow-to-nscales-35bn-ipo-ambitions/
- Topics: AI, Americas, Business, Companies, Markets, Technology, UK, World

## Key points

- Microsoft passed on extra Texas data centre capacity.
- Nscale’s current 240-megawatt agreement remains intact.
- The decision adds scrutiny ahead of a proposed $35bn IPO.

## Summary

Microsoft has declined an option to rent substantially more computing capacity at Nscale’s Texas data centre, leaving the British AI company seeking other customers for the space. The decision follows Microsoft’s withdrawal from a planned UK project and adds pressure on Nscale to show it can deliver the infrastructure behind its proposed $35bn New York listing.

Nscale’s existing Texas agreement for about 240 megawatts remains in place; the rejected option covered roughly 500 megawatts and could have brought tens of billions of dollars in future revenue. The move does not change its reported $103bn contracted backlog. Nscale is targeting more than twice the $14.6bn valuation it raised at earlier this year, despite reporting a $1bn net loss on $141m revenue in the first half of 2026; its other large projects have also faced delays.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.