Milbank guides record-breaking $1.1bn raise for UK AI data centre startup

Milbank has advised London-based AI infrastructure company Nscale on its $1.1 billion funding round - the largest Series B in European history.

The raise, led by Norwegian investor Aker with backing from the likes of Nvidia, Nokia and Dell, will bankroll Nscale’s rollout of AI data centres across Europe. The company - spun out of an Australian crypto mining firm in 2023 - is already working with OpenAI on its "Stargate" projects in the UK and Norway, part of a multibillion-dollar push to build the infrastructure needed to train and run the biggest AI models.

Data infrastructure boom

Nscale has quickly become one of the names to watch in the scramble for AI infrastructure. It recently announced plans with Microsoft to build the UK’s largest AI supercomputer at its Loughton campus in Essex.

The company is positioning itself as a "sovereign" AI infrastructure provider, giving customers the option to process data locally rather than offshore.

The deal underlines the legal industry’s growing role in the data centre gold rush. Apollo’s recent acquisition of cooling specialist Kelvion saw Sidley Austin, Paul Weiss and Kirkland all involved, while Qualcomm’s swoop for UK-listed Alphawave earlier this year pulled in Paul Weiss and Linklaters - with fees on that deal alone hitting £32 million.

Advising

The Milbank team was led by partners Jaime Ramirez and Dan Bartfeld in New York and Jordan Simpson and James McClymont in London.

Private equity specialist Simpson said: "Nscale’s landmark Series B underscores the global demand for large-scale AI infrastructure and will further enable Nscale to build out one of the largest global platforms of its kind". He added: "We are thrilled to support Nscale on its incredible growth trajectory."