There’s home in these hills: West Virginia isn’t AI’s dumping ground

Nvidia is reportedly in talks to guarantee billions in debt financing for AI cloud provider Nscale's planned Anthropic data center in West Virginia, according to The Information and later confirmed by Bloomberg. Anthropic has already signed a $44.6 billion contract for the project's first building. Nvidia's involvement as a co-signer on the loans would demonstrate the industry's efforts to keep AI buildouts afloat amidst growing investor concerns about the scale of investments.

The agreement would cover the electricity and construction costs of the West Virginia campus, potentially helping Nscale secure financing if it defaults on payments. Nvidia would step in to temporarily take over the facility and assist in finding a new tenant if needed. While Nvidia has previously supported cloud providers through leases and chip purchases, this would mark a new level of financial commitment, particularly in construction.

The backing comes as Nscale attempts to go public with a valuation up to $35 billion, despite skepticism about its ability to deliver on ambitious data center projects. Anthropic's deal at Nscale encompasses a 460-megawatt building utilizing Nvidia's upcoming Vera Rubin chips, with talks ongoing for a second deal worth around $45 billion.

Nscale has faced challenges in getting its projects underway, including environmental issues at its West Virginia site. The AI industry has increasingly turned to Nvidia for financial support, with the company committing over $170 billion in investments and credit to neoclouds and major customers, including $1 billion in convertible financing to Nscale in September.