Armada and Nscale Forge Partnership to Deliver Sovereign AI at Scale and Edge

Armada and Nscale Forge Partnership to Deliver Sovereign AI at Scale and Edge February 6, 2026 The accelerating global demand for sovereign artificial intelligence infrastructure, driven by data privacy regulations and the need for low-latency processing, has catalyzed a significant strategic alliance in the data center sector. Edge infrastructure specialist Armada and neocloud AI compute provider Nscale have signed a Letter of Intent to co-develop and deliver full-stack sovereign AI solutions. The partnership aims to combine Armada's modular, containerized data center technology, designed for rapid deployment at the network edge, with Nscale's substantial GPU compute capacity housed in large-scale centralized facilities. Together, they plan to serve both public sector and enterprise customers through a "hub and spoke" model. This approach leverages Nscale's core data centers for foundational capacity and superior economics, while Armada's portable units enable distributed AI inference and training closer to the point of data generation. Josh Payne, founder and CEO of Nscale, highlighted the market need, stating, “There is increasing demand from enterprises and governments for operational AI, and meeting that need requires infrastructure that is scalable, distributed, and ultimately sovereign.” Dan Wright, co-founder and CEO of Armada, emphasized the expanded reach of the collaboration: “Partnering with Nscale allows us to extend our modular AI infrastructure into new global markets, supporting customers who require sovereign, high-performance compute.” The alliance brings together two well-capitalized players. Armada, previously backed by Microsoft, secured $131 million in funding in July 2025 to support the launch of its megawatt-scale 'Leviathan' containerized data center, which boasts ten times the compute capacity of its earlier 'Triton' offering. Nscale, meanwhile, is reportedly working on a $2 billion fundraising round ahead of a potential IPO. Nscale's portfolio includes a major partnership with OpenAI to power its 'Stargate UK' data centers and develop 'Stargate Norway', a project in Kvandal, Norway, slated to eventually house 100,000 GPUs. This collaboration signals a strategic move to capture a growing segment of the AI infrastructure market that prioritizes data control, security, and geographical flexibility. By merging large-scale core compute with agile edge deployment, the partnership is positioned to address complex AI workloads for governments and multinational corporations operating under strict sovereignty mandates. Source: datacenterdynamics