Microsoft rejects option to more than double Nscale Texas contract ahead of $35B IPO
The FT says Microsoft declined an option worth tens of billions, leaving Nscale to find new customers for the Texas expansion ahead of its planned IPO.
By Ryan Merket · Published
Primary source: ft.com
Why it matters
Nscale reported $103.4 billion in active and contracted value but only $2.6 billion active, with revenue of $140.6 million against a $1.02 billion first-half loss. Microsoft declining the Texas expansion shows how much of that pipeline depends on anchor tenants exercising options and on sites being delivered on time, just as public investors are asked to value the company at up to $35 billion.
Microsoft has rejected an option to more than double its existing contract to rent computing power at an Nscale data centre site in Texas, walking away from a potential deal worth tens of billions of dollars, the Financial Times reported on November 5th. Reuters repeated the FT report the same day and said it could not immediately verify it.…
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