WhiteFiber Inc. announced that its subsidiary Enovum NC‑1 Bidco, LLC has signed a 10‑year, 40‑megawatt colocation agreement with Nscale Global Holdings. The contract, valued at approximately $865 million in total revenue, will generate a predictable, long‑term income stream for the company’s flagship NC‑1 data center campus in Madison, North Carolina, and positions WhiteFiber to attract additional financing and accelerate future expansion.
The master services agreement was executed on November 22, 2025, and the public announcement was issued on December 18, 2025. The 40 MW commitment is structured in two 20‑MW phases, with billing expected to begin on April 30, 2026 for the first phase and May 30, 2026 for the second. The NC‑1 facility is Tier 3‑equivalent, supports up to 150 kW per cabinet, and is designed with redundant power distribution, N+1 cooling, and a targeted PUE of 1.3 or better, ensuring high reliability for AI workloads.
WhiteFiber has invested roughly $150 million of equity into the NC‑1 site and plans to secure a credit facility in early Q1 2026 to fund the remaining construction. The Nscale deal is expected to improve WhiteFiber’s cash‑flow profile and provide a stable revenue base that will support ongoing capital expenditures. Analysts estimate that the contract’s net operating income margin could reach 90%, reflecting the high pass‑through of electricity and other operating costs to the tenant.
In its Q3 2025 earnings, WhiteFiber reported $20.2 million in revenue, an 8% sequential increase that beat the $18.6 million consensus estimate. However, the company posted a net loss per share that fell short of expectations, largely due to higher public‑company costs and increased GPU‑procurement expenses. CEO Sam Tabar noted that the company “took time reviewing multiple offers before selecting Nscale” and that the partnership “validates our strategy to engineer NC‑1 to meet hyperscaler specifications and support the most advanced AI workloads.”
The deal has been highlighted by analysts as a strong positive catalyst for WhiteFiber’s growth strategy. The 10‑year commitment from a major AI infrastructure provider underscores the demand for high‑density, AI‑optimized data center capacity and enhances WhiteFiber’s credibility with lenders and future tenants. While the company’s Q3 results show a net loss, the long‑term revenue certainty from Nscale offsets short‑term profitability pressures and signals confidence in the company’s execution model.
WhiteFiber plans to potentially double the initial 40 MW deployment at NC‑1 by the end of 2027, contingent on continued demand from AI workloads. The company’s focus on vertically integrated GPU‑cloud services, combined with the Nscale partnership, positions it to capture a growing share of the AI infrastructure market and to leverage its specialized facilities for high‑margin, high‑density workloads.
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