Nscale to Invest $2.5 Billion in UK Data Centres, Powering Generative AI and Government Ambitions

Nscale, a London-headquartered AI hyperscaler, has unveiled plans to invest an impressive $2.5 billion (£2 billion) in the UK’s data centre industry over the next three years. This major commitment is set to bolster the UK Government’s AI Opportunities Action Plan and the country’s ambitions to become a global leader in generative AI. Nscale’s expansion will include the construction of advanced AI data centres—both fixed and modular—powered by clean energy and equipped with cutting-edge GPU technology to meet the fast-growing demand for AI-driven workloads.

Investing $2.5 Billion in UK Data Centres

Underlining its commitment to the UK, Nscale confirmed its first local data centre with the purchase of a site in Loughton. The facility is slated to go live in Q4 2026 and is designed to support 50 MW of AI and high-performance computing (HPC) capacity, with the potential to scale up to 90 MW. When fully deployed, this location can host up to 45,000 of the latest NVIDIA GB200 GPUs, all efficiently cooled through advanced liquid-cooling systems. This single site is expected to create 500 jobs during the construction phase and an additional 250 positions over three years for ongoing operations.

Beyond the Loughton site, Nscale aims to begin constructing multiple modular UK-based data centres in Q3 and Q4 2025, with further fixed data centre expansions planned for subsequent years. These facilities will provide vital, sovereign AI infrastructure, ensuring that data stays within Europe. This move is poised to nurture innovation and accelerate the UK’s global competitiveness in AI, unlocking new commercial investment while empowering the local AI startup community.

Catalyzing Sovereignty and Innovation

Nscale’s investment not only supports the UK Government’s AI Opportunities Action Plan—it also emphasizes data sovereignty. According to Karl Havard, COO of Nscale, a secure, generative AI cloud is key to meeting the growing need for sovereign infrastructure. With more industries and institutions prioritizing data security, the new data centres will deliver high-performance AI capabilities while ensuring critical information remains within UK borders. By blending sovereignty with next-generation AI infrastructure, Nscale is attracting additional overseas investment and fostering a thriving AI ecosystem across the country.

Sustainable AI at Scale

Sustainability lies at the heart of Nscale’s approach. The company powers its operations with 100% renewable energy, complemented by energy-efficient adiabatic cooling where possible—practices already in place at its 60 MW data centre in Norway. These measures result in up to 40% improvement in resource efficiency, an average 80% cost saving compared to other hyperscalers, and 30% faster time to insights for AI projects.

Nscale’s AI infrastructure is grounded in a vertically integrated approach, meaning the company owns and operates the entire technology stack. From advanced data centre hardware to a sophisticated orchestration layer that leverages Kubernetes and Slurm, Nscale can optimise each component for top performance. Nscale’s GPU offerings include models such as the NVIDIA A100, H100, GB200, and AMD MI300X and MI250X—each catering to various AI workloads like model training, fine-tuning, and large-scale inference.

Driving AI Forward

With a $155 million Series A funding round concluded, Nscale is channeling capital toward a global 1.3 GW pipeline of greenfield data centres spread across Europe and North America. CEO Josh Payne notes that these expansions enable the deployment of high-performance GPU clusters more efficiently and at scale, fueling rapid growth in generative AI. “Our investment in the UK marks a significant milestone in building next-generation AI infrastructure. This expansion will help us meet the growing demand for generative AI by deploying advanced GPU clusters more efficiently. Additionally, capital from our recent funding round will accelerate our global 1.3 GW pipeline of greenfield data centres, with 120 MW planned for development in 2025. This underscores our commitment to delivering sustainable, scalable AI infrastructure that drives innovation and economic growth.”

Nscale’s UK data centre investments align closely with the country’s commitment to secure a leadership position in AI by 2030. Science, Innovation, and Technology Secretary Peter Kyle has lauded the announcement, stating that “Nscale’s investment reinforces the UK’s standing as a global leader in AI and shows real confidence in our blueprint to turbocharge the use of the technology and how we’re delivering our Plan for Change to put AI to work for communities across the country. Their support will serve as a catalyst for innovation – sending a clear message that Britain is the perfect home from home to drive growth, deliver high-skilled jobs, and access the cutting-edge tools that will fuel the AI revolution.”

Accelerating Model Training and Fine-Tuning

Nscale’s cloud platform is specifically engineered to cut down on AI development hurdles. Thanks to a GPU-optimised architecture, the company provides:

• 30% Faster Insights: A streamlined stack that reduces time to value for AI projects.
• 80% Lower Cost: On average, significantly more cost-effective than competing hyperscalers.
• 40% More Efficient: Enhanced resource utilisation, ensuring performance gains without compromising sustainability.

This approach extends to specialized workloads, including model training and fine-tuning. Through simplified scheduling and orchestration, customers can rapidly spin up Slurm clusters on Kubernetes, enabling robust job management and containerized deployments. Whether for large language model training or fine-tuning smaller datasets, Nscale offers flexible compute options tailored to each stage of AI development.

Looking Ahead

Nscale‘s $2.5 billion investment marks a pivotal moment in the UK’s journey to become a global AI leader. By building out advanced data centre infrastructure, driving sustainable AI practices, and offering an integrated suite of GPU services, Nscale is igniting new opportunities for industries, startups, and research institutions alike. As the UK Government steers the nation toward 2030 AI leadership, Nscale’s forward-thinking investments will play a critical role in shaping the future of AI, fueling cutting-edge innovation while adhering to environmentally responsible practices.