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

Nscalean AI hyperscaler headquartered in London, has unveiled plans to invest an impressive $2.5 billion (£2 billion) in the UK data center industry over the next three years. This important commitment is intended to… The UK Government’s AI Opportunity Action Plan and the country’s ambitions to become a global leader in generative AI. Nscale’s expansion includes building advanced AI data centers – both fixed and modular – powered by clean energy and equipped with cutting-edge GPU technology to meet the rapidly growing demand for AI-driven workloads.

Investment of $2.5 billion in UK data centres

Underscoring its commitment to the UK, Nscale confirmed its first local data center with the purchase of a site in Loughton. The facility is expected to go live in the fourth quarter of 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 could accommodate up to 45,000 of the latest NVIDIA GB200 GPUsall efficiently cooled by advanced liquid cooling systems. This one site is expected to create 500 jobs during the construction phase and a further 250 jobs over three years for ongoing operations.

In addition to the Loughton location, Nscale wants to start building multiple modular British data centers in the third and fourth quarters of 2025, with further expansions of the fixed data center planned for the following years. These facilities will provide a vital, sovereign AI infrastructure, ensuring data stays within Europe. The move is poised to drive innovation and accelerate Britain’s global competitiveness in AI, unlocking new commercial investment while strengthening the local AI startup community.

Catalyzing sovereignty and innovation

Nscale’s investment not only supports the UK government’s AI Opportunities Action Plan, but also emphasizes data sovereignty. According to Karl Havard, COO of Nscalea secure, generative AI cloud is key to meeting the growing need for sovereign infrastructure. As more industries and institutions prioritize data security, the new data centers will deliver high-quality AI capabilities while ensuring crucial information remains within UK borders. By combining sovereignty with next-generation AI infrastructure, Nscale will attract additional foreign investment and foster a thriving AI ecosystem across the country.

Sustainable AI at scale

Sustainability is at the core of Nscale’s approach. The company powers its business with 100% renewable energysupplemented where possible with energy-efficient evaporative cooling – practices already in use in the 60 MW data center in Norway. These measures result in an improvement in resource efficiency of up to 40%, an average cost savings of 80% compared to other hyperscalers and a 30% faster time-to-insight for AI projects.

Nscale’s AI infrastructure is based on a vertically integrated approach, meaning the company owns and operates the entire technology stack. From advanced data center hardware to an advanced orchestration layer using Kubernetes and Slurm, Nscale can optimize every component for peak performance. Nscale’s GPU offering includes models such as the NVIDIA A100, H100, GB200 and AMD MI300X and MI250X, each suitable for different AI workloads such as model training, fine tuning and large-scale inference.

Advancing AI

Now that a $155 million Series A funding round has been completed, Nscale is channeling capital into a global pipeline of 1.3 GW of greenfield data centers across Europe and North America. CEO Josh Payne notes that these extensions enable the deployment of high-performance GPU clusters more efficiently and at scale, fueling rapid growth of generative AI. “Us Investments in Britain mark a major 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 pipeline of 1.3 GW of greenfield data centers, with 120 MW planned to be developed by 2025. This underlines our commitment to delivering sustainable, scalable AI infrastructure that drives innovation and economic stimulates growth.”

Nscale’s UK data center investments are closely aligned with the country’s commitment to securing a leading position in AI by 2030. Minister for Science, Innovation and Technology Peter Kyle has praised the announcement and stated that “Nscale’s investment strengthens the UK’s position as a world leader in AI and shows real confidence in our blueprint to boost the use of the technology and in the way we are delivering our Plan for Change to bring AI to putting in the work for communities across the country. Their support will serve as a catalyst for innovation and send a clear message that Britain is the perfect home from home to boost growth, create highly skilled jobs and access the cutting-edge tools that will fuel the AI ​​revolution. ”

Accelerated model training and refinement

Nscale’s cloud platform is specifically designed to reduce hurdles in AI development. Thanks to a GPU-optimized architecture, the company offers:

• 30% faster insights: A streamlined stack that shortens time-to-value for AI projects.
• 80% lower costs: Significantly more cost-effective on average than competing hyperscalers.
• 40% more efficient: Improved resource use, ensuring performance improvements without compromising sustainability.

This approach extends to specialized workloads, including model training and refinement. Through simplified scheduling and orchestration, customers can quickly deploy Slurm clusters on Kubernetes, enabling robust task management and container deployments. Whether training large language models or refining smaller data sets, Nscale offers flexible computing options tailored to every stage of AI development.

Looking ahead

NscaleThe $2.5 billion investment marks a pivotal moment in Britain’s journey to become a global AI leader. By building out an advanced data center infrastructure, driving sustainable AI practices and offering an integrated suite of GPU services, Nscale is creating new opportunities for industries, startups and research institutions alike. As the UK government steers the nation towards AI leadership by 2030, Nscale’s forward-thinking investments will play a crucial role in shaping the future of AI, driving breakthrough innovation while adhering to environmentally responsible practices.