Microsoft and Anthropic Dominate Nscale’s Contract Pipeline

Nscale’s planned New York Stock Exchange listing is putting a spotlight on one of the biggest questions facing AI infrastructure companies: how much of a large contract backlog can ultimately become recurring revenue. The British data-center operator disclosed that Microsoft and Anthropic together represent roughly 85% of its $103 billion in total contract value.

Nscale has signed multiple agreements with Microsoft since late 2025 worth approximately $43.8 billion through 2033. The company then added a separate $44.6 billion agreement with Anthropic in August to provide computing capacity at a planned eight-gigawatt facility in West Virginia.

Anthropic Agreement Carries Execution Conditions

The Anthropic contract also highlights the difference between headline contract value and realized business. Nscale must meet specified milestones and maintain reliable computing performance under the agreement. Failure to satisfy those requirements could give Anthropic grounds to terminate the arrangement.

Nscale is targeting 2028 for activation of the facility’s initial two gigawatts of capacity, but financing for the Anthropic project has not yet been secured. That creates an important execution component for investors assessing how much of the announced contract value can eventually translate into operating revenue.

Huge Backlog, Limited Current Revenue

Nscale itself acknowledged the customer concentration issue in its regulatory filing, stating that a substantial portion of its revenue is generated by a limited number of customers. Only $2.6 billion of the company’s $103 billion in total contract value was active at the end of August, underscoring the long timeline between signing agreements and deploying the infrastructure needed to fulfill them.

The company nevertheless recorded significant top-line growth. Revenue reached $140.6 million during the first six months of 2026, up 1,252% from $10.4 million in the comparable period a year earlier. At the same time, Nscale reported a net loss of $1.02 billion, illustrating the heavy capital requirements associated with building AI infrastructure at scale.

Nvidia Adds Another Layer of Dependency

Nscale’s relationship with Nvidia is another important part of its business model. Nvidia has participated in financing rounds, supplied chips for Nscale’s data centers and guaranteed roughly $860 million in lease obligations. Nvidia also participated in a recently announced $3.1 billion financing package, receiving $1 billion through convertible notes or non-voting shares.

Despite the close relationship, Nscale warned that the partnership does not eliminate supply-chain risks that could delay delivery of the chips required by its data centers. That risk becomes increasingly important as Nscale attempts to scale capacity rapidly for major AI customers.

AI Infrastructure Growth Meets Capital Intensity

Nscale belongs to a growing group of neocloud companies that lease Nvidia GPUs to AI developers. Competitors include CoreWeave and Nebius, with the sector benefiting from the rapid expansion of AI computing demand.

For investors, however, the IPO presents a combination of extraordinary contract potential, customer concentration and substantial capital requirements. Nscale’s ability to convert long-term commitments into operational capacity and revenue will be central to determining the underlying strength of its growth model.

What Investors May Watch Next

The Nscale IPO will provide another test of investor appetite for AI infrastructure businesses with large future commitments but significant execution and financing requirements. Investors may focus on the pace at which contracted capacity becomes active, the company’s ability to diversify its customer base, financing for major facilities and whether rapid revenue growth can eventually translate into improving profitability.