Nscale's Glomfjord Data Center Delayed Six Months as Company Prepares $35bn IPO

Nscale's data center project in Glomfjord, Norway, is running approximately six months behind schedule, according to a Bloomberg report citing people close to the project and public records. The delay represents a significant operational challenge for the AI cloud provider as it simultaneously prepares for one of the most closely watched initial public offerings in the data center sector.

The project has encountered a series of hurdles including construction delays, local regulatory complications, leaks in the cooling system, and a transformer fire. A source familiar with the project told DCD that the transformer fire occurred in December 2025 and destroyed switchgear, though temporary generators maintained the cooling system and no delay to the project resulted from the incident. Similarly, the cooling system leak was resolved within weeks, and the cooling system was completed more than three months ago without disruption to the customer. The source acknowledged an overall delay to the project but noted it was communicated to the customer, with no fines or penalties imposed.

Currently, only 6.4MW of the planned 30MW capacity is operational at the site. To accelerate construction, Nscale has towed in the Kalmar floating hotel to accommodate construction workers near the facility, according to Bloomberg.

The delay comes as Nscale prepares to launch its IPO, with reports suggesting the company could seek a valuation of up to $35 billion. The company published its IPO prospectus in September, disclosing five active data centers offering a combined 55MW, with 12 additional sites in various stages of development. Among the risk factors listed in the prospectus are "delays in construction" as well as "construction site accidents" and "delays or denials of entitlements or permits, including zoning and related permits, work permits, demolition permits, start permits, design permits, operational permits, and close-out permits."

Investors will be weighing the company's $103 billion in total contracted value, largely driven by contracts with Anthropic and Microsoft, for which Nscale is currently building out capacity. The company has reported rapid revenue growth, recording $140.6 million for the six months to the end of June 2026, which it claims represents a 1,252 percent year-over-year increase. However, losses also ballooned to $1.02 billion, compared to $368.9 million in the same period of 2025.

The Glomfjord setback underscores the execution risks facing AI infrastructure developers as they race to bring capacity online amid surging demand from hyperscalers and AI model providers. Nscale's ability to demonstrate operational resilience will be critical as it courts public market investors. The broader IPO environment for data center firms has also shown signs of turbulence, with Australian neocloud Firmus recently dropping its IPO plans, citing volatile market conditions and stating that proceeding with the offer was "not in the best interests of the company and its shareholders."