ChronoScale and Microsoft Partner on 50MW AI Deployment in North America

ChronoScale, the cloud computing spin-off of data center developer Applied Digital, has announced a partnership with Microsoft to deploy a 50MW AI infrastructure project in the United States. The deployment will be built on Nvidia GB300 NVL72 systems and will incorporate liquid cooling technology, reflecting the growing industry shift toward high-density accelerated computing architectures.

The exact location of the deployment has not been disclosed. However, according to ChronoScale's recently filed annual report, the company currently leases 1.5MW, 5MW, and 7.5MW of capacity from third-party data centers in Minnesota, Utah, and Colorado, respectively. This new project with Microsoft represents a significant scale-up from those existing operations, positioning ChronoScale to support far larger AI workloads.

“Microsoft is helping define the next era of AI, and we are proud to partner with them on the infrastructure required to support that transformation,” said Cenly Chen, CEO of ChronoScale. “This planned 50MW deployment reflects our focus on building AI infrastructure for the density and scale of accelerated computing. By combining Nvidia GB300 NVL72 systems, liquid cooling, and our full-stack infrastructure capabilities, we intend to deliver production-ready AI compute with the performance, reliability, and scalability our customers require.”

The partnership comes at a pivotal time for ChronoScale. For the fiscal year ending May 31, 2026, the company reported revenue of $71.6 million, a 15 percent decline from the prior year, which it attributed to the loss of a customer in the latter half of the previous fiscal year. The Microsoft deal could help reverse that trajectory by anchoring the company's growth in the rapidly expanding AI infrastructure market.

ChronoScale was carved out of Applied Digital through a complex transaction announced in January 2026. Applied Digital combined its cloud unit with Ekso Bionics Holdings, a company known for developing exoskeleton solutions, to form ChronoScale Corporation. Applied Digital retained approximately 97 percent ownership of the new entity, with Ekso holding the remaining shares. The spin-out was completed on May 5, 2026.

Applied Digital itself remains a significant player in the data center development space, focusing on high-performance computing (HPC) facilities and cryptocurrency mining data centers. According to its annual report, the company operates the Polaris Forge 1 campus in Ellendale, North Dakota, which includes 100MW of IT capacity that came online in October 2025. A second building at that campus, offering 150MW, was partially operational as of May 2026, and a third 150MW data center is under construction with a targeted launch in 2027. CoreWeave is a customer at this site.

Beyond Polaris Forge 1, Applied Digital broke ground on Polaris Forge 2 in Harwood, North Dakota, in August 2024. That campus will have an initial 200MW of capacity expected to be fully online by 2027, and is leased by an unnamed US-based investment-grade hyperscaler under a 15-year agreement. Meanwhile, Delta Forge 1, located in a "strategic southern US market" and offering 300MW, broke ground in January 2026 and has already secured a 15-year lease with another hyperscale customer. An April investor presentation identified the site as being in Alexandria, Louisiana.

The company is also developing Polaris Forge 3, a 300MW data center campus in a "northern United States region" that is under construction and fully leased, with delivery expected to begin in the second half of 2027. Additionally, Delta Forge 2, a 210MW campus also located in the South, is under construction and slated for delivery in 2028.

The Microsoft-ChronoScale partnership underscores a broader industry trend: hyperscale cloud providers are increasingly turning to specialized infrastructure partners to meet the immense power and cooling demands of next-generation AI systems. By leveraging Nvidia GB300 NVL72 platforms and advanced liquid cooling, the deployment aims to deliver the performance and efficiency required for production-scale AI workloads. For ChronoScale, this deal not only validates its technical capabilities but also provides a strategic anchor as it seeks to establish itself as a credible player in the competitive AI cloud services market.