Power & SitesUnited States

Nscale's Glomfjord data center delayed, site suffers leaks in cooling system and a fire

Credited to Data Center Dynamics · datacenterdynamics.com4h ago

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Nscale's data center project in Glomfjord, Norway, is reportedly running six months behind schedule.

According to a report from Bloomberg, citing people close to the project and public records, the data center has faced hurdles including construction delays, local regulations, leaks in the cooling system, and a transformer fire.

Currently, 6.4MW of the planned 30MW is operational at the site.

To help speed up construction, Bloomberg reports that the company has towed in the Kalmar floating hotel to house construction workers nearby.

DCD has contacted Nscale for comment and verification of Bloomberg's claims.

Nscale is currently preparing to launch its initial public offering, with reports suggesting it could be seeking a valuation of up to $35 billion.

The company published its IPO prospectus in September, which noted that Nscale has five active data centers offering a combined 55MW, with 12 in various stages of development.

In that IPO prospectus, among the risk factors listed 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, which in certain locations we depend on third parties to obtain or other delays resulting from requirements of public agencies and utility companies."

With this in mind, investors will be betting on the company's $103bn in total contracted value, largely thanks to contracts with Anthropic and Microsoft, for which it is currently building out capacity.

The company has seen its revenue grow rapidly, recording $140.6 million for the six months to the end of June 2026, which the company claims is up 1,252 percent Year-over-Year. However, losses also ballooned to $1.02bn, compared to $368.9m in the same period of 2025.

Earlier this month, Aussie neocloud Firmus dropped its plans for an IPO, blaming "volatile market conditions."

“The board therefore concluded that proceeding with the offer was not in the best interests of the company and its shareholders," the Firmus statement said. "Firmus will now pursue capital from the private markets and consider alternative public and private market options.”

This came after reports emerged that the company had pulled the plug on its collaboration with CDC Data Centres, dubbed Project Southgate, that could have seen 1.6GW of capacity built in Australia. Only 43MW was delivered under the agreement, though Firmus is seemingly still going ahead with the build-out, but without CDC.

Original · Data Center Dynamics

Front Method

Capital · United States

Voltus's $225m round is a bet that flexibility can help data centers get connected

Credited to Rackline · Rachel Okonkwo · voltus.co · 8h ago

Photograph · Rackline · Rachel Okonkwo

The data center buildout has a power problem that money alone has not solved: getting new load onto a crowded grid. Voltus's $225m Series D, announced on Oct. 8, is a sign that investors now see a business in a different answer. Rather than wait for new plants and wires, a data center operator pays for flexible capacity that already sits on the grid, in batteries, cooling systems and industrial processes at homes and businesses, and brings it to the table as part of its case to connect.

The round was oversubscribed. Generation Investment Management led, with Activate Capital and Vitol as co-leads, and Broadscale Group, Climate Investment, NGP, Ajax Strategies and All Aboard Fund also invested. Voltus did not disclose a valuation.

The money is aimed at Voltus's Bring Your Own Capacity programs, faster battery deployment and hiring, according to Wilson Sonsini Goodrich & Rosati, which advised Voltus on the deal. Bring Your Own Capacity, launched last year, lets large power users such as AI hyperscalers bring flexible capacity of their own to help get their data centers connected. The hyperscaler pays. Voltus enrolls equipment at homes and businesses, cuts demand when the grid needs it and pays the participants.

Voltus and Google have set this against what their June release called an "asset-heavy approach," "spending years and billions of dollars expanding the grid to handle short periods of peak demand." Here the new load funds capacity first, drawn from customers already connected, and the payments go to those customers.

The backers' own statements make the thesis plain. "As electricity demand rises, the fastest, most cost effective and lowest-carbon source of new capacity is often the one already connected to the grid," said Dave Easton, a growth equity partner at Generation Investment Management. Raj Atluru, managing partner of Activate Capital, an existing backer, said: "Flexibility is the fastest and cheapest capacity the grid can add." He added: "Voltus is the best solution we've seen to the challenge of interconnecting large loads and decarbonizing our energy system while keeping retail rates affordable."

The mix of investors matters as much as the quotes. A growth equity fund, an existing backer and Vitol, which describes itself as "one of the largest power traders in the US," are underwriting the same model. Voltus said the round drew investors "across energy security, economic development, sustainability, and AI infrastructure." For a capacity product that has to be bought, dispatched and settled in power markets, a trader on the cap table brings what R. Andrew de Pass, head of energy transition investments at Vitol Inc., called "a deep understanding of market dynamics."

The model has two named commercial deals behind it. In June, Voltus signed a three-year agreement with Google to gather up to 100 megawatts a year of accredited distributed capacity in PJM, the largest US grid operator, into a Google-funded virtual power plant. Voltus pays the homes and businesses that take part. Michael Terrell, Google's global head of advanced energy, called it "a first-of-its-kind model for unlocking capacity to meet new data center growth." In August, Sunrun agreed to supply capacity from a portion of its residential solar-and-battery systems in PJM and MISO for Voltus's hyperscaler agreements.

Voltus has also moved to build supply. In June it acquired Brightfield AI, a battery project development company, on undisclosed terms, to speed up storage deployment.

Google is pursuing flexibility on more than one front. Alongside the Voltus deal, it has said it is making its own data center demand more flexible to unlock 1 gigawatt of demand response capacity through agreements with multiple utilities. Terrell called the Voltus deal an addition to "a growing toolkit." For investors, that suggests at least one of the largest buyers sees flexibility as a tool to use alongside, not instead of, conventional supply.

The numbers set the scale of the bet. Voltus says it expects to grow its platform to 20 gigawatts by 2030 as it rolls out Bring Your Own Capacity in PJM and MISO and expands across the US and Canada. The one contract with a disclosed size is up to 100 MW a year. The gap between the two is what the new money has to close.

None of the announcements says how much sooner a data center connects because it brought capacity, or what a hyperscaler pays per megawatt. Those are the figures that will decide whether the model works at scale, and the next contracts are where they will show up, if they are disclosed.

The demand backdrop is not in question. Voltus cited the North American Electric Reliability Corporation's forecast that peak demand will grow 24% over the next decade, "more than double the growth it forecast two years ago." Dana Guernsey, Voltus's chief executive, framed the task as speed: "The question is no longer whether the grid needs flexibility, it's how quickly we can make it foundational."

For investors tracking the space, the practical read is that flexibility is being sold not only into power markets but to data center developers who need to connect, and the money is following that buyer.