Nscale is currently negotiating a second contract with Anthropic worth approximately $45 billion. The deal involves constructing a new facility at the Monarch campus in West Virginia, which would utilize Nvidia Vera Rubin AI chips and provide 460 MW of power. The companies previously signed a similar $45 billion agreement in August for computing capacity.
Anthropic has also secured a right of first refusal for a potential third facility at the same campus. While negotiations are ongoing, the final terms remain subject to change. This expansion follows a period of rapid growth for Nscale, which has increased its total contracted project value from $100 million to over $103 billion in two and a half years.
The company faces operational hurdles, as Microsoft recently withdrew from a data center deal due to power connection delays pushing energy availability into the 2030s. Nscale operates in a competitive landscape alongside firms like Nebius, Crusoe, and Lambda, while investors are increasingly scrutinizing the debt levels and infrastructure costs of AI-focused data center providers.
Market sentiment remains cautious following a decline in CoreWeave shares linked to concerns over its $50 billion debt load. Additionally, reports indicate that investors have urged Anthropic to lower its valuation targets ahead of a potential IPO, reflecting broader market anxiety regarding the sustainability of current AI sector valuations.
