WhiteFiber Announces $865 Million Contract to Operate 40 Megawatts for Nscale
Key Facts
WhiteFiber announced on December 18, 2025, that its subsidiary Enovum Data Centers had entered into a long-term hosting agreement with Nscale Global Holdings, providing 40 megawatts of IT load at the NC-1 campus in North Carolina. The company estimated contracted revenue at about $865 million over the first 10 years, including annual price increases and installation services, but excluding electricity and certain other costs charged to the customer. The contract value comes from operating capacity dedicated to AI infrastructure, while revenue realization depends on delivery of the facility and its reaching contracted capacity. The contracted load is divided into two phases, with 20 megawatts in each. WhiteFiber described the deal in its June 2026 investor presentation as its anchor contract at NC-1, confirming that the announcement dates to December 2025 and was not a new agreement in October 2026.
The agreement has an initial term of 10 years, with an annual 3% increase in recurring service fees. The contract is structured as a modified gross lease, with some expenses passed through to the customer, while installation costs are paid according to milestones. The $865 million value therefore does not represent a fixed net amount covering all operating expenses: it excludes electricity and certain pass-through costs, while including fee increases and nonrecurring installation services. WhiteFiber said Nscale would use the capacity to operate AI infrastructure for global investment-grade technology companies. This gives the facility a role in hosting computing workloads for enterprise customers, with revenue tied to the actual start of services.
According to WhiteFiber's June 2026 investor presentation, the 40 megawatts of capacity represented by the first and second phases was fully contracted. The company expected billing to begin in the second quarter of 2026, with full revenue contribution beginning in the third quarter as the facility reached contracted capacity. The presentation tied both dates to completion of construction and commissioning, making the shift from contract to operating revenue dependent on completing those two steps. In a subsequent disclosure, WhiteFiber said it expected full revenue contribution to begin in the third quarter of 2026 as NC-1 reached its agreed capacity. The company spent $322.5 million on facility construction development during the first half of the year, while hosting services revenue reached $9.5 million, compared with $3.4 million in the same period of 2025; it attributed the increase mainly to the MTL-3 site in Montreal beginning to generate revenue in November 2025.
Expansion at NC-1 depends on the availability of electricity as well as completion of development work. WhiteFiber said the site is backed by a 99-megawatt capacity agreement with Duke Energy and could support total power supply of up to 200 megawatts over time, subject to infrastructure upgrades and other conditions. The power agreement calls for commercially reasonable efforts to provide 24 megawatts in total by September 1, 2025, 40 megawatts by April 1, 2026, and then 99 megawatts within four years of May 16, 2025. In contrast, the company warned in its annual disclosure that, without additional debt financing, it would not have sufficient funds to upgrade NC-1 as a high-performance computing data center or reach estimated total capacity of 99 megawatts by May 2029. These financing requirements and the timing of electricity supply impose practical constraints on converting potential capacity into operational capacity.
When announcing the contract, WhiteFiber said it looked forward to working with Nscale to plan a potential expansion that would increase the scale of deployment to about twice its size by the end of 2027. The expansion remains a stated possibility, given the company's wording tying it to planning and the site's ability to provide electricity, rather than making it part of the 40 megawatts of contracted capacity. The growth outlook depends on infrastructure development and the availability of funding for upgrade work. In the market, WYFI shares closed at $9.52 on October 26, 2026, according to EL7 data. Recorded closes were $11.38 on October 20, $11.66 on October 21, $10.55 on October 22 and $9.98 on October 23; the data provided do not include other daily prices or an explanation for the share movement.