Nscale Secures $865 Million Deal for 40MW Capacity at WhiteFiber's North Carolina Data Center

Nscale Secures $865 Million Deal for 40MW Capacity at WhiteFiber's North Carolina Data Center December 22, 2025 In a significant move underscoring the intense demand for AI-ready infrastructure, GPU cloud provider Nscale has entered into a landmark $865 million agreement to secure 40 megawatts of capacity at WhiteFiber's upcoming NC-1 data center in Madison, North Carolina. The ten-year deal highlights the strategic pivot of infrastructure firms towards catering to the massive computational needs of hyperscalers and artificial intelligence workloads. The agreement, announced today, grants Nscale access to 40MW of power at the facility, which is being developed by WhiteFiber, the high-performance computing and colocation subsidiary of Bitcoin mining firm Bit Digital. Under the terms, Nscale will begin payments for an initial 20MW block in April 2026, with a second 20MW block following in May 2026. The contract includes an option for Nscale to potentially double its deployment at the site by the end of 2027, reflecting the scalable nature of the project. The NC-1 data center is being constructed on a 96-acre site formerly occupied by a Unifi textile manufacturing plant. Bit Digital and WhiteFiber have invested $150 million into the property, which boasts a 946,585-square-foot building. The companies plan to develop an initial 99MW of capacity at the location, with a long-term roadmap to expand to 200MW. Sam Tabar, CEO of WhiteFiber, stated that the partnership validates the company's strategy, saying, "This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads." For Nscale, a company spun out from crypto-miner Arkon Energy just last year, this deal marks another major expansion in its rapid growth trajectory. The firm has recently signed multi-billion dollar agreements to supply AI compute capacity to tech giants like Microsoft and OpenAI, leveraging a global footprint that includes facilities in Norway, Iceland, Portugal, and the United Kingdom. The North Carolina acquisition provides a crucial strategic foothold in the robust US data center market, particularly in a region known for attractive power costs and connectivity. The transaction signals a broader industry trend where companies originally focused on cryptocurrency mining are successfully repurposing their expertise, capital, and infrastructure to address the booming demand for high-density AI computing. It also reinforces North Carolina's status as a premier destination for digital infrastructure investment, driven by its favorable economic and utility landscape. Source: datacenterdynamics

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