Europe’s race to build sovereign AI infrastructure is accelerating, and British hyperscaler Nscale has taken a major step forward. The company announced it has secured a €1.1 billion delayed draw term loan (DDTL) to finance large-scale GPU infrastructure deployments across Europe, positioning itself to meet surging enterprise demand for AI compute.
The debt facility was led by global asset management giants PIMCO, Blue Owl Capital, and LuminArx Capital Management, with participation from additional banks and institutional investors. The financing will allow Nscale to purchase high-performance GPU systems needed to power AI workloads for customers with signed contracts, as well as future deployments.
This latest funding builds on Nscale’s aggressive growth trajectory. The company previously raised €146 million in Series A funding in late 2024 and followed that with a massive €936 million Series B round in September 2025, highlighting strong investor confidence in its AI infrastructure strategy.
Meeting Europe’s exploding demand for AI compute
Demand for AI infrastructure has grown rapidly as enterprises deploy generative AI applications, machine learning systems, and AI-powered automation. Unlike traditional cloud computing, AI workloads require specialised GPU clusters capable of handling massive parallel processing tasks.
Nscale’s founder and CEO, Josh Payne, emphasised the urgency of scaling infrastructure to match market needs.
“We’re seeing massive demand for AI infrastructure to support businesses and consumers,” Payne said. “This GPU debt financing is a key step in delivering infrastructure faster and more cost-effectively, from large-scale hubs in Norway to metro clusters designed for low-latency workloads.”
The delayed draw term loan provides flexible capital that Nscale can use as needed to fund GPU purchases, allowing the company to align infrastructure investments with customer demand and signed contracts.
Building sovereign AI infrastructure in Europe
Founded in 2024, Nscale positions itself as an AI-native hyperscaler offering vertically integrated infrastructure. Its platform combines GPU compute, networking, storage, and managed AI software services delivered through its own and colocated data centres.
One of Nscale’s key advantages is its use of strategically located data centres powered by low-cost renewable energy. This enables the company to reduce operating costs while offering competitive pricing to customers seeking AI compute capacity.
The new funding will support the deployment of multiple GPU clusters across Europe, ensuring enterprises have access to local, high-performance AI infrastructure that meets data sovereignty and regulatory requirements.
Debt financing signals maturity in AI infrastructure market
Nscale’s €1.1 billion debt facility reflects a broader shift in how AI infrastructure is financed. Rather than relying solely on equity, companies are increasingly using structured debt to fund capital-intensive GPU deployments.
This approach allows infrastructure providers to scale faster without diluting ownership, while providing investors with predictable returns backed by infrastructure assets and customer contracts.
The move also reflects growing investor confidence in AI infrastructure as a long-term, stable asset class similar to traditional data centres and telecommunications networks.
Europe’s AI infrastructure ecosystem gaining momentum
Nscale’s financing comes amid growing investment in European AI compute providers. Companies such as Finland-based DataCrunch and London-based NexGen Cloud have also secured funding to expand sovereign compute capabilities.
However, Nscale’s €1.1 billion debt facility dwarfs many recent funding rounds and signals Europe’s ambition to compete with dominant global hyperscalers.
The company has already secured contracts for multiple large-scale compute clusters worldwide and expanded its capabilities through strategic acquisitions, including Future-tech, a European data centre engineering consultancy.
Positioning for long-term AI infrastructure leadership
With access to significant capital, Nscale is now positioned to rapidly expand its GPU infrastructure footprint across Europe and beyond. The funding provides both immediate deployment capacity and flexibility to support future growth.
As AI adoption accelerates across industries, infrastructure providers like Nscale are becoming critical enablers of the AI economy. Companies that can deliver scalable, efficient, and cost-effective GPU infrastructure are likely to play a central role in shaping the future of enterprise AI.
Nscale’s latest €1.1 billion financing marks one of the largest infrastructure commitments in Europe’s AI sector, reinforcing its ambition to become a leading hyperscaler in the global AI compute race.