WhiteFiber Signs $865 Million 10-Year Colocation Deal with Nscale for NC-1 AI Data Center Campus
WhiteFiber has entered into a 10-year colocation agreement with Nscale Global Holdings valued at approximately $865 million. The deal covers a 40 MW initial load at WhiteFiber's NC-1 AI data center campus located in Madison, North Carolina, and is planned to be deployed in two phases of 20 MW each.
The contract includes annual rate escalators and non-recurring installation services but excludes electricity and certain pass-through costs. WhiteFiber’s NC-1 campus holds a 99 MW capacity agreement with Duke Energy and, with planned infrastructure upgrades, could support up to 200 MW in total. The facility is described as Tier 3-equivalent and ultra-high-density, supporting up to 150 kW per cabinet with fully redundant power distribution and N+1 cooling systems. It targets a power usage effectiveness (PUE) of 1.3 or better.
WhiteFiber has invested about $150 million of equity into the NC-1 site and is in advanced discussions with lenders to finalize a credit facility expected in early Q1 2026, considering credit enhancement structures.
The company, Nasdaq-listed and focused on AI and HPC data center and colocation services, was spun out of Bit Digital. It held its IPO in August 2025, raising about $160 million gross, with shares rising approximately 13% in after-hours trading to $16.19 following the announcement.
CEO Sam Tabar stated that NC-1 is engineered to hyperscaler specifications and has the potential to double deployment by the end of 2027. This deal reflects the ongoing AI-driven demand for data center capacity and aligns with wider industry trends of miners pivoting toward AI deployments.
