WhiteFiber Secures $865M AI Data Center Deal with Nscale, Fueling North Carolina AI Hub

NEW YORK, NY – December 18, 2025 – In a landmark deal signaling the voracious appetite for artificial intelligence infrastructure, data center provider WhiteFiber, Inc. (Nasdaq: WYFI) today announced an approximately $865 million, 10-year agreement with AI cloud provider Nscale Global Holdings. The contract secures Nscale as the anchor tenant for WhiteFiber’s flagship NC-1 data center campus in Madison, North Carolina, committing to 40 megawatts (MW) of critical IT load to power the AI workloads of top-tier global technology companies.

The agreement is a major validation for WhiteFiber, a specialized provider that went public in August 2025, and its strategy of building data centers purpose-built for the extreme demands of AI and high-performance computing (HPC). For a company that reported a net loss in its last quarter, this massive, long-term revenue stream provides significant stability and a powerful proof point for its business model. The deal includes contractual annual rate escalators of 3 percent and is structured as a modified-gross lease, where costs for electricity and certain other expenses are passed through to Nscale.

"WhiteFiber has taken a prudent and cautious approach to client selection. We took our time, reviewing multiple offers before selecting Nscale, a partner with a proven track record of hyperscaler deployments," said Sam Tabar, CEO of WhiteFiber. "This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads."

A Landmark Deal in the AI Infrastructure Gold Rush

This partnership brings together two highly specialized players in the booming AI ecosystem. Nscale, though only founded in 2024, has rapidly emerged as a critical force. The European-headquartered provider recently raised over $1.7 billion in funding from a consortium of major investors including NVIDIA, Dell Technologies, and Aker ASA. It has already forged deep partnerships to provide infrastructure for titans like Microsoft and OpenAI, positioning itself as a go-to provider for sovereign-grade, high-performance AI cloud services.

The decision by Nscale to anchor its U.S. deployment at NC-1 underscores the credibility of WhiteFiber's offering. The deal is emblematic of a broader industry trend where colossal sums are being invested to build the physical backbone of the AI revolution. For context, Microsoft alone has announced plans to invest $80 billion in AI-enabled infrastructure in fiscal 2025. By securing a well-funded, high-growth partner like Nscale, WhiteFiber solidifies its position in this competitive market, moving beyond its earlier geographic concentration in Iceland to establish a major U.S. foothold.

Engineering the AI Engine Room

The technical specifications of the NC-1 campus reveal why specialized facilities are essential for modern AI. The 96-acre site is being retrofitted into a Tier 3-equivalent facility, engineered for N+1 redundancy in power and cooling to ensure high availability. Its most critical feature is the ability to support ultra-high-density power loads of up to 150 kilowatts (kW) per cabinet.

This density is a necessity for housing the latest generations of power-hungry GPUs that form the heart of AI training and inference clusters. Traditional data centers, often designed for 10-15 kW per rack, are ill-equipped for this thermal and electrical challenge. To manage the immense heat generated, WhiteFiber is targeting a Power Usage Effectiveness (PUE) of 1.3 or better, a measure of high energy efficiency that will be achieved through advanced cooling and power distribution systems. A lower PUE directly translates to lower operational electricity costs for Nscale, a key consideration in such a power-intensive operation.

"This partnership demonstrates the effectiveness of our retrofit model and how WhiteFiber can meet the exacting standards of leading AI providers with hyperscaler requirements on an accelerated timeline," said Billy Krasskopoulos, President of WhiteFiber. The rapid deployment schedule, with the first 20 MW phase targeted to go live by April 30, 2026, and the second by May 30, 2026, showcases the agility WhiteFiber aims to provide.

De-Risking Growth and Fueling Future Expansion

Financially, the Nscale agreement is a transformative event for WhiteFiber. The company has already invested approximately $150 million of its own equity into the NC-1 site, significantly de-risking the project for prospective lenders. The company announced it is in advanced discussions to formalize a credit facility in early Q1 2026, which is expected to feature an "accordion structure" allowing for expanded borrowing to fund future growth.

This deal provides the commercial validation needed to unlock that financing on attractive terms. With a predictable, long-term revenue stream of nearly a billion dollars, WhiteFiber can more confidently execute on its ambitious development pipeline, which it reports includes over 1 gigawatt of projects for 2026–2027 delivery. The company has stated that the commercial demand catalyzed by the Nscale agreement is already shaping the development of its next campus sites.

The power infrastructure supporting the campus is equally ambitious. WhiteFiber has secured a 99 MW capacity agreement with Duke Energy, and preliminary studies suggest the site could eventually support up to 200 MW of total electrical supply, providing a clear runway for future expansion. As part of the agreement, Nscale will receive priority notification of future capacity at NC-1, and WhiteFiber's CEO has already indicated plans for a potential expansion of Nscale's deployment toward double its initial size by the end of 2027.