Nvidia-backed AI data center developer Nscale is reportedly facing investor resistance to its target valuation of $30 billion to $35 billion for a planned U.S. IPO. Some investors reportedly favor a valuation of $16 billion to $19 billion. They cite construction delays at Nscale’s flagship data center in Norway and the collapse of a planned IPO by a similar company.
London-based Nscale filed for an IPO on the New York Stock Exchange in September. Recent developments have added to concerns. Microsoft withdrew as an anchor tenant at a key U.K. site because of potential delays in connecting it to the power grid.
Microsoft and Anthropic reportedly account for about 85% of Nscale’s contracted revenue.