WhiteFiber and Nscale signed a 10-year colocation agreement covering 40 MW of critical IT load at WhiteFiber’s NC-1 AI data center campus in Madison, North Carolina. The deal represents approximately $865 million in total contracted value over the initial term and positions NC-1 as an anchor site for large-scale AI and HPC deployments starting in 2026.
The capacity will be delivered in two 20 MW phases, with billing for the first phase targeted to begin April 30, 2026, and the second phase on May 30, 2026. WhiteFiber designed NC-1 as a Tier 3-equivalent, ultra-high-density facility capable of supporting up to 150 kW per cabinet, with N+1 cooling and a targeted average PUE of 1.3 or better. Power is backed by a 99 MW capacity agreement with Duke Energy, with potential to scale total site power toward 200 MW over time, subject to upgrades.
WhiteFiber also outlined progress on project financing, noting approximately $150 million of equity already invested in NC-1 and ongoing discussions with lenders for a construction credit facility expected in early Q1 2026. The company said the agreement establishes Nscale as the anchor tenant and accelerates plans for additional U.S. campuses scheduled for delivery in the second half of 2026 and 2027.
Agreement details
- Capacity: 40 MW of critical IT load, delivered in two 20 MW phases
- Term: 10 years with 3 percent annual rate escalators on recurring services
- Total contract value: ~$865 million, including escalators and non-recurring installation charges
- Structure: Modified-gross colocation with passthrough for power, PUE, and property taxes
- Design: Tier 3-equivalent, ultra-high-density facility supporting up to 150 kW per cabinet
- Power: 99 MW utility agreement, with long-term potential to scale toward 200 MW
- Expansion: Nscale receives priority notification for future NC-1 capacity
“This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads,” said Sam Tabar, CEO of WhiteFiber. “We look forward to working closely with Nscale as we plan for the potential expansion of this deployment toward double its initial size by the end of 2027.”
🌐 Analysis
The deal underscores rising demand for long-term, high-density AI colocation in secondary U.S. markets where large power blocks and accelerated delivery timelines remain available. It also highlights a broader industry shift toward anchor-tenant models that combine early equity investment with multi-year hyperscale commitments to secure financing and enable rapid campus-level expansion.
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