Anthropic in talks with neocloud Nscale for second $45bn data center deal

Potential agreement would add a second 460-megawatt facility at West Virginia site as AI lab races to expand computing capacity

By LineZotpaper

Published20 October 2026

Read Time2 min

Sources2 outlets

Anthropic is in discussions with UK-based neocloud provider Nscale for a second multibillion-dollar deal to lease computing capacity at a site in West Virginia, according to a person familiar with the matter. The agreement could be worth around $45 billion and would cover an additional 460-megawatt data center at the same location as an earlier deal, the person said.

The talks, first reported by Bloomberg, come as Anthropic works to relieve what it described earlier this year as "inevitable strain" on its infrastructure from growing demand for its Claude AI models. The company has since announced a series of deals with major technology partners including Advanced Micro Devices, SpaceX, Google and Broadcom.

CNBC reported the initial deal between Anthropic and Nscale in August. The person familiar with the current negotiations spoke on condition of anonymity because they were not authorized to discuss the talks publicly. Anthropic declined to comment. Nscale has been approached for comment.

Nscale, which is backed by Nvidia, is one of several companies that have emerged to develop infrastructure for artificial intelligence, building or leasing data centers and selling computing capacity to hyperscalers and AI labs. The company filed to go public on the New York Stock Exchange in September.

The neocloud sector has faced headwinds recently. Rivals CoreWeave and Nebius have seen their shares drop 28% and 27% respectively over the past month amid concerns about heavy borrowing. Nscale itself encountered a setback when Microsoft pulled out of a deal to anchor an Nscale data center near London due to delays connecting to the UK's power grid, as reported by The Telegraph.

An Nscale spokesperson told CNBC that the company remained "committed" to the project and was "exploring alternative power sources for the site." The spokesperson added: "Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts."

The potential second deal underscores the scale of computing resources that leading AI labs are seeking to secure as demand for their models continues to grow rapidly.

Analysis

Why This Matters

The deal highlights the enormous capital requirements of frontier AI development, with infrastructure costs running into the tens of billions of dollars.
It signals that Anthropic sees sustained demand for its Claude models and is locking in long-term compute capacity to avoid bottlenecks.
The negotiations come against a backdrop of investor concerns about neocloud debt levels, making the deal a test of confidence in the sector.

Background

Nscale is part of a new generation of infrastructure companies that build and lease data centers specifically designed for AI workloads. These neoclouds have emerged to fill capacity not always available from the major cloud providers. Anthropic, an AI safety-focused company founded by former OpenAI employees, has rapidly expanded its compute footprint through multiple partnerships. The broader AI infrastructure market has faced scrutiny over the sustainability of the heavy borrowing that funds these large-scale data center projects.

Key Perspectives

Anthropic: Needs massive computing capacity to train and serve its Claude models. The company has acknowledged infrastructure strain and is pursuing multiple vendor relationships to secure enough power and hardware. Nscale: Seeks to establish itself as a major AI infrastructure provider. A second deal with Anthropic would validate its business model and provide a strong anchor tenant ahead of its planned NYSE listing. Critics/Skeptics: The AI infrastructure buildout carries significant financial risk. Falling share prices at rival neoclouds and the Microsoft pullout in London raise questions about demand certainty and the sector's dependence on continued AI spending.

What to Watch

Whether the deal is finalized and at what valuation, given the volatility in neocloud stocks.
How Nscale resolves its UK power grid issues and whether that affects investor confidence ahead of its IPO.
Anthropic's next infrastructure announcements, as it continues to expand capacity to support Claude's growing user base.

Sources

Anthropic in talks with neocloud Nscale over second multibillion-dollar deal, source tells CNBC · US Top News and Analysis
Anthropic in talks with neocloud Nscale over second multibillion-dollar deal, source tells CNBC · Tech

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

Partly supportedAnthropic is in talks for a second $45 billion data-center deal.US Top News and Analysis: “The deal could be worth around $45 billion, the person said.”
SupportedThe potential agreement would add a second 460-megawatt facility at the West Virginia site.US Top News and Analysis: “The agreement would cover a second 460-megawatt data center at the same West Virginia site as the first deal, the person said.”
SupportedThe possible second deal could be worth around $45 billion.US Top News and Analysis: “The deal could be worth around $45 billion, the person said.”
SupportedBloomberg first reported that Anthropic and Nscale were in talks over a second deal.US Top News and Analysis: “Bloomberg first reported that Anthropic and Nscale were in talks over a second deal.”
SupportedAnthropic described growing demand for its Claude models and products as causing “inevitable strain” on its infrastructure.US Top News and Analysis: “Anthropic said earlier this year that growing demand for its Claude AI models and products has caused “inevitable strain” on its infrastructure.”
SupportedAnthropic has announced deals with AMD, SpaceX, Google and Broadcom to increase computing capacity.US Top News and Analysis: “Since then, it has announced a flurry of deals with infrastructure partners to try and increase its computing capacity, including major agreements with Advanced Micro Devices , Elon Musk's SpaceX , Google and Broadcom .”
SupportedCNBC reported the first Anthropic–Nscale deal in August.US Top News and Analysis: “CNBC reported the first deal in August.”
SupportedAn Nscale spokesperson told CNBC the company remained “committed” to the project and was “exploring alternative power sources for the site.”US Top News and Analysis: “An Nscale spokesperson told CNBC that it remained “committed” to the project and was “exploring alternative power sources for the site.””
SupportedThe Nscale spokesperson said its relationship with Microsoft remained “strong and long-term” and the grid issue had “no impact on our other contracts.”US Top News and Analysis: ““Our relationship with Microsoft remains strong and long-term, and this unfortunate London-wide grid issue has no impact on our other contracts,” the spokesperson added.”
Partly supportedMicrosoft pulled out of an Nscale data-center deal near London because of delays connecting to the UK power grid.US Top News and Analysis: “On Sunday, U.K. newspaper The Telegraph reported that Microsoft had pulled out of a deal to anchor an Nscale data center just outside London, amid delays connecting to the country's power grid.”
SupportedCoreWeave and Nebius shares fell 28% and 27%, respectively, over the past month amid concerns about heavy borrowing.US Top News and Analysis: “Rivals CoreWeave and Nebius have seen their shares drop 28% and 27%, respectively, in the past month, amid concerns over heavy borrowing.”
Partly supportedLeading AI labs are seeking computing resources at scale as demand for their models continues to grow rapidly.US Top News and Analysis: “Since then, it has announced a flurry of deals with infrastructure partners to try and increase its computing capacity”