Nick Clegg could make £30m windfall from datacentre startup Nscale flotation

Former UK deputy prime minister Nick Clegg could potentially gain a windfall of approximately $40 million (£30 million) from the planned flotation of datacentre startup Nscale, which is preparing for a listing on the US stock market. Clegg owns over 917,000 shares in the company, representing a 0.12% stake. If Nscale achieves a valuation of up to $35 billion, Clegg's shares could be worth around $42 million.

Additionally, Nscale's board member Sheryl Sandberg, Facebook's former president, owns a 0.25% stake, which could be valued at $88 million at the same $35 billion valuation. However, Nscale's most recent valuation was $14.6 billion, suggesting that Clegg's and Sandberg's stakes are worth about $18 million and $37 million, respectively.

Forbes estimates Sandberg's wealth at $2.4 billion, while Clegg has made around £24 million from selling shares in Meta, the company where he served as president of global affairs. Both Clegg and Sandberg receive an annual retainer of $60,000. Nscale recently filed paperwork for its US flotation, with the company aiming to debut on the stock market before the end of the year.

The company is based in the UK and is expanding globally, with plans to list its shares in New York, reflecting the strong investment potential in AI infrastructure projects in the United States. Nscale reported a $1 billion loss in the six months leading up to June 30, 2024, on revenues of $140 million. The flotation paperwork states that this loss is due to substantial investments in a capital-intensive business.

Nscale's CEO, Josh Payne, believes there is significant potential in sovereign AI, where countries develop their own AI models and infrastructure to reduce dependence on US or Chinese technology. Notable figures, including Christine Lagarde, president of the European Central Bank, and Margrethe Vestager, former EU competition head, have called for Europe to invest more in AI infrastructure.

Payne asserts that Nscale is well-positioned to meet this demand as a trusted, sovereign-capable platform, particularly in Europe where the need for sovereign AI infrastructure is especially critical. Nscale operates five datacenters in Europe and has 12 more under varying stages of construction, including one uncompleted project in Loughton, Essex.