Microsoft declines option to expand Texas data-centre deal with Nscale

Technology · First reported 5 Nov, 09:56 · Updated 20:31

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Microsoft has decided not to take up an option for additional computing capacity at an Nscale data-centre site in Texas, according to the supplied reports. The decision comes as Nscale prepares for a potential public offering.

Microsoft declined an option to lease additional capacity at Nscale’s Texas data-centre site; the centre report describes this as not extending a contract.
The existing Texas agreement, made in October 2025, covers around 240 megawatts; Nscale told the Financial Times the additional option was closer to 500 megawatts.
The Times of India report says Nscale may need to find other customers for the additional capacity and notes that power for the remaining capacity at an adjacent site has not been secured.
Both reports connect the decision with Nscale’s planned public offering; the detailed report says the company is preparing for a potential IPO this year.

Summary written by Lux AI from 3 articles

Key facts

Existing Texas capacity: Around 240 megawatts.
Additional option: Nscale told the Financial Times it was closer to 500 megawatts.
Agreement date: October 2025.
Nscale offering: A potential IPO this year, according to the detailed report.