Nscale in talks for second Anthropic deal after Microsoft exit

Nscale is reportedly in advanced negotiations to secure a second major computing contract with Anthropic, a move that would significantly expand the British firm’s infrastructure commitments. The potential agreement, valued at approximately $45bn, comes just one day after Microsoft withdrew from a flagship data centre project in the United Kingdom. If finalised, the new deal would nearly double Anthropic’s total financial commitment to Nscale, bringing the combined value of their agreements to close to $90bn.

The proposed contract involves the supply of computing power from a second facility at Nscale’s Monarch campus in West Virginia. The arrangement would cover 460 megawatts of capacity utilising Nvidia’s next-generation Vera Rubin chips. Bloomberg reported that the agreement could be signed within days, although discussions are ongoing and terms remain subject to change. This follows an initial $44.6bn agreement signed in August, under which Anthropic agreed to lease computing capacity from the same West Virginia site over a six-year period. Nscale and Anthropic have not publicly commented on the current negotiations.

The timing of these talks is critical for Nscale, which is preparing for a high-profile listing on the New York stock market. The company is reportedly targeting a valuation of up to $30bn, although some investors have advocated for a lower figure in the range of $16bn to $19bn. The backdrop to these discussions includes recent setbacks in Nscale’s operations. Microsoft recently pulled out of plans to develop what was described as Britain’s largest AI data centre in Loughton, Essex. The £2bn project, which was championed by the government, has been delayed due to issues with electricity grid connections. Nscale stated that it remains committed to the project and that its long-term relationship with Microsoft is unaffected by the local grid issues.

Concerns regarding Nscale’s execution capabilities have also emerged from other parts of its portfolio. Last week, reports indicated that construction at the company’s flagship facility in Glomfjord, Norway, was six months behind schedule due to technical problems, including cooling system leaks and a fire. Financial filings for the first half of 2026 showed a net loss of $1bn on revenue of $141m. Additionally, IPO filings revealed that Nscale had yet to secure financing for the infrastructure required to fulfil its first Anthropic contract. Under that initial agreement, Anthropic retains the right to terminate the deal if Nscale fails to meet specific financing and operational milestones. The proposed second contract would therefore serve as a significant indicator of confidence in the company’s expansion plans, even as it faces the challenge of securing funding for additional computing infrastructure.

These developments highlight the growing financial commitments underpinning the artificial intelligence sector. As demand for advanced models increases, developers are racing to secure computing power, while investors grow increasingly concerned about the debt and execution risks facing data centre developers.