Nscale: Exploring the Bull Case for the Neocloud Stock 

Neocloud provider Nscale could shortly become a publicly traded company. According to Bloomberg, the company is planning an IPO as early as September¹.

In this article, we are going to explore the bull case for the AI infrastructure stock. Here’s why many investors are excited about an IPO.

Rapid Revenue Growth

Let’s start with the company’s revenue growth. Because this is prolific.

Recently, Nscale told potential backers that its revenue exceeded $100 million in the second quarter of 2026². That compares to around $37 million in Q1 of 2026 and roughly $33 million for all of 2025.

So, this company is seeing rapid growth amid the AI boom. Note that its total contracted revenue stands at $51 billion², according to Bloomberg.

Source: Investing.com, as of August 6, 2026

Full Stack AI Offering

As for why the company is growing so quickly, there are several reasons. One is that it operates across the AI stack³, offering organizations access to:

• GPU and CPU compute: Nscale offers dedicated GPU infrastructure customized to organizations’ operational requirements.
• An AI software platform: Nscale Cloud offers dedicated inference, customizable environments, management tools such as Kubernetes and Slurm, enterprise Identity and Access Management (IAM), and security.
• Data centers: Nscale operates purpose-built, modular, liquid-cooled data centers across the UK, Norway, Portugal, Iceland, and North America.
• Energy and power: Nscale offers behind-the-meter power generation and microgrid capabilities, enabling customers to bypass multi-year utility grid interconnection queues.

Diverse Customer Base

A second growth driver is its diverse customer base. Like other neocloud providers such as CoreWeave and Nebius, Nscale counts hyperscalers, Big Tech firms, frontier AI labs, and foundation model developers as customers.

However, it also serves European national bodies seeking AI sovereignty and European corporations that are operating under European privacy and AI governance regulations. For these customers, Nscale’s London headquarters and European data centers are a major selling point.

Expansion Plans

Another pillar of the bull case is the company’s expansion plans. Today, Nscale has about 25,000 GPUs in operation, offering approximately 830 MW of compute power².

Looking ahead, however, it’s targeting 10 GW of compute power². According to Bloomberg, it is contracted for about 194,000 Nvidia Vera Rubin GPUs and 264,000 GPUs in total¹.

Energy Costs and Infrastructure Edge

It’s also worth highlighting the fact that Nscale has structural cost advantages due to its cheap renewable energy access – acquired before the company was spun out of Bitcoin miner Arkon Energy. Cheap energy access should keep its power and cooling costs low.

Additionally, it has the ability to bypass interconnection queues. Thanks to its behind-the-meter power generation and microgrid capabilities, Nscale can potentially circumvent multi-year utility grid waiting lists.

Big-Name Backers

Finally, it’s worth highlighting Nscale’s backers. Looking at the company’s funding history, there are some big names on board here.

Tech firms that have invested in Nscale include Nvidia, Dell, Nokia, and Lenovo while investment firms that have backed the company include Aker ASA, Jane Street, Blue Owl, and Point 72. Note that both its Series B funding round⁴ and its Series C funding round⁵ were the largest in European history.

Get Ready for the IPO

In summary, Nscale looks well positioned to become a major force in the AI infrastructure space. By pairing an end-to-end, full-stack AI offering with direct access to low-cost renewable power and independent microgrid capabilities, the company is addressing fundamental bottlenecks within the AI industry – compute capacity and power availability.

With exponential quarter-over-quarter revenue acceleration, a $51 billion contracted backlog, and strong institutional backing from tech leaders like Nvidia and Dell, there’s a lot to like about the company from an investment perspective. While investors will ultimately weigh execution and valuation risks against long-term growth potential, a potential September IPO could be a blockbuster event.

Footnotes:

¹Investing.com, Nscale seeks $3 billion US IPO amid AI data center rush, as of August 21, 2026

²Investing.com, Nscale reports $51 billion contracted revenue ahead of Sept. IPO - Bloomberg, as of August 6, 2026

³Nscale, Nscale.com, as of August 12, 2026

⁴Nscale, Nscale Raises the Largest Series B in European History, at $1.1 billion, as of September 25, 2025

⁵Nscale, Nscale Raises $2 Billion in Series C — the Largest in European History, as of March 9, 2026