AI Industry

Nscale's Reported $30B IPO Target Meets Investor Pushback

Oct 19, 2026·3 min read·By Rahish Saifi

Unconnected black power-cable conduits rising from an empty concrete foundation slab on a fenced construction site at grey dawn

On October 19, 2026, The Business Times carried a Bloomberg report that Nvidia-backed AI data centre developer Nscale has been seeking an IPO valuation of about US$30 billion, while a cohort of investors has urged a US$16 billion to US$19 billion range as more likely to find favour with buyers. According to people familiar with the matter cited by Bloomberg, factors include the collapse of Australian AI data centre company Firmus's IPO plan. Deliberations are ongoing, details could change, and no final decisions have been made; Nscale declined to comment.

London-based Nscale, which describes itself as a full-stack AI cloud platform, is developing data centres in locations including Norway and West Virginia, according to Bloomberg. Its Norway facility, just north of the Arctic Circle, is billed as its flagship site.

The ask versus the pushback

Bloomberg frames a wide gap between the roughly $30 billion figure Nscale has reportedly floated and the $16 billion to $19 billion band some investors believe buyers will accept after AI-infrastructure stocks sold off and Firmus's IPO plan collapsed. Nscale has not publicly confirmed either number.

S-1, pre-IPO round, and IPO timeline

Nscale develops AI data centre capacity. On September 18, 2026, it filed publicly for a US IPO on Form S-1, applied to list on the NYSE as "NSCL", and has not yet set share count or price range. Lead bookrunners are Goldman Sachs, J.P. Morgan, and Morgan Stanley (SEC filing).

Per Bloomberg, Nscale has not begun formal marketing though the 15-day waiting period has elapsed; it is working through SEC comments. On Sept. 25 it announced a US$3.36 billion pre-IPO convertible loan note round led by Third Point, with Nvidia, Apollo, Citadel, Hudson Bay Capital, and Abu Dhabi Investment Council. Bloomberg reported in August the IPO could raise as much as US$3 billion.

Milestone	Reported detail	Source
Form S-1 filed	Sept. 18, 2026; proposed NYSE ticker NSCL	Nscale, SEC
Pre-IPO round	US$3.36B; Third Point led; Nvidia among backers	Bloomberg via Business Times
Valuation debate	~US$30B sought vs US$16B–US$19B urged by some investors	Bloomberg via Business Times, Oct. 19, 2026
IPO proceeds (prior report)	Up to ~US$3B	Bloomberg, August 2026

Microsoft Essex setback and Norway delays

Microsoft pulled out of Nscale's planned £2 billion AI data centre in Loughton, Essex, first reported by The Telegraph on Oct. 18, 2026; Microsoft was to be the site's anchor tenant, and the BBC understands it has terminated its involvement. Power will reportedly not arrive until the 2030s. Nscale told the BBC: "We remain committed to both the Loughton project and the UK and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK." and "Our relationship with Microsoft remains strong and long-term." Microsoft declined to comment. The companies still work together in Norway, Portugal, and the US. Bloomberg adds Nscale's Norway site north of the Arctic Circle is reportedly six months behind schedule.

Market context

Bloomberg noted CoreWeave lost about a quarter of its market value last week and Nebius fell 32% in the past two weeks, as stock prices for several of Nscale's peers were battered.

What to watch

Watch for an amended S-1 with price range and share count, whether bankers bridge the ~$30B ask and the $16B–$19B band, and execution on UK power and the Norway schedule. Bloomberg notes bankers also face a crowded calendar, with Anthropic's debut expected as soon as November; a wide valuation gap could still slow Nscale's IPO.

Bottom line

Reportedly, Nscale wants near $30 billion on the IPO while some investors favour $16 billion to $19 billion, with Firmus and peer selloffs in the background. The S-1 is filed for NSCL, $2.36 billion of a $3.36 billion pre-IPO convertible round has closed, with Nvidia's $1 billion due in mid-November, and marketing has not started. Deliberations continue; Nscale declined to comment.