WhiteFiber and Nscale Announce 10-Year, 40 MW Colocation Agreement Representing Approximately $865 Million in Total Contract Value at NC-1 AI Data Center Campus

Rhea-AI Summary

WhiteFiber (Nasdaq: WYFI) announced a 10-year, 40 MW colocation agreement with Nscale at the NC-1 AI data center campus in Madison, NC, with an estimated $865 million total contract value including escalators and non-recurring installation charges.

The deployment is in two 20 MW phases, with billing for the first phase targeted to start April 30, 2026 and the second phase May 30, 2026. WhiteFiber has invested approximately $150 million of equity to date and is pursuing a construction credit facility expected to be formalized in early Q1 2026.

Facility specs include Tier 3-equivalent design, targeted average PUE 1.3, support up to 150 kW per cabinet, and a 99 MW capacity agreement with Duke Energy with potential to support up to 200 MW over time.

Positive

• Total contract value approximately $865M over 10 years
• 40 MW of committed critical IT load in two 20 MW phases
• Company invested ~$150M equity into NC-1 site
• Targeted billing start for first capacity on April 30, 2026

Negative

• Agreement excludes electricity and certain pass-through costs for customer
• Financing not finalized; credit facility expected only in early Q1 2026
• Site power expansion to ~200 MW is conditional on infrastructure upgrades

News Market Reaction – WYFI

+17.06%

19 alerts

+17.06% News Effect

+21.3% Peak in 20 hr 17 min

+$84M Valuation Impact

$578M Market Cap

0.8x Rel. Volume

On the day this news was published, WYFI gained 17.06%, reflecting a significant positive market reaction. Argus tracked a peak move of +21.3% during that session. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $84M to the company's valuation, bringing the market cap to $578M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Colocation capacity: 40 MW Total contract value: $865 million Contract term: 10 years +5 more

8 metrics

Colocation capacity 40 MW Critical IT load at NC-1, delivered in two 20 MW phases

Total contract value $865 million Contracted revenue over initial 10-year term for NC-1 colocation

Contract term 10 years Initial term of Nscale colocation agreement

Annual escalators 3 percent Yearly rate escalators on recurring service fees

Equity invested in NC-1 $150 million Equity WhiteFiber has invested into NC-1 site to date

Duke Energy capacity 99 MW Existing power capacity agreement supporting NC-1

Potential total supply 200 MW Management belief on site’s possible electrical capacity over time

Target PUE 1.3 Targeted average Power Usage Effectiveness for NC-1

Market Reality Check

Price: $16.85 Vol: Volume 741,238 is below 2...

normal vol

$16.85 Last Close

Volume Volume 741,238 is below 20-day average 980,640 (relative 0.76x). normal

Technical Price $14.30 is trading below 200-day MA of $23.40, near the 52-week low of $14.01 and well under the $40.75 52-week high.

Peers on Argus

WYFI fell 6.03% while peers showed mixed moves: PDFS (-2.07%), VTEX (-1.59%) and...

WYFI fell 6.03% while peers showed mixed moves: PDFS (-2.07%), VTEX (-1.59%) and PRO (-0.04%) were down, but RSKD (+2.66%) and SPT (+0.63%) were up, indicating a stock-specific reaction rather than a uniform sector move.

Historical Context

5 past events · Latest: Dec 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 05	Crypto treasury update	Positive	-8.2%	BTBT reported expanded ETH holdings and staking income with sizable treasury value.
Nov 17	Investor conferences	Positive	+1.4%	WYFI announced participation in multiple investor conferences offering management access.
Nov 14	BTBT Q3 earnings	Positive	-9.4%	BTBT posted higher revenue, strong ETH staking growth and significant net income.
Nov 13	WYFI Q3 earnings	Negative	-12.6%	WYFI reported strong revenue growth but a widened net loss and lower Adjusted EBITDA.
Nov 07	BTBT earnings date	Neutral	+1.0%	BTBT set the release date and call time for its Q3 2025 results.

Pattern Detected

Recent fundamental updates have often seen negative or muted price reactions, including a notable selloff after Q3 2025 earnings, while some positive Bit Digital news showed price divergences.

Recent Company History

Over the last few months, the wider ecosystem around WhiteFiber featured multiple Bit Digital (BTBT) updates and WhiteFiber’s own IPO-driven growth story. WhiteFiber’s Q3 2025 report on Nov 13 showed rapid revenue growth but a wider net loss, and the stock fell 12.62%. Earlier, a WhiteFiber investor-conference update on Nov 17 coincided with a modest 1.39% gain. Several BTBT releases on crypto, staking metrics, and strong Q3 financial results saw share-price declines, underscoring a pattern where seemingly constructive fundamentals did not consistently translate into positive price reactions.

Market Pulse Summary

The stock surged +17.1% in the session following this news. A strong positive reaction aligns with t...

Analysis

The stock surged +17.1% in the session following this news. A strong positive reaction aligns with the substantial visibility from a 40 MW, 10-year colocation agreement valued at about $865 million. Historically, WhiteFiber’s own Q3 earnings on Nov 13, 2025 led to a 12.62% drop despite revenue growth, showing prior skepticism around fundamentals. Investors would need to weigh execution risks at NC-1, construction and financing milestones in early Q1 2026, and concentration in a single flagship campus when judging sustainability.

Key Terms

colocation, pue, n+1 cooling, modified-gross colocation lease

4 terms

colocation technical

"WhiteFiber, Inc. ... a next-generation data center and colocation provider"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

pue technical

"targeted average PUE of 1.3 or better"

Power Usage Effectiveness (PUE) measures how efficiently a data center uses energy by comparing total facility power to the power used by the computing equipment; a PUE of 1.0 means all power goes to servers, while higher numbers indicate more energy spent on cooling and infrastructure. Investors care because lower PUE usually means lower operating costs and better environmental performance, similar to choosing a fuel‑efficient car to save money and reduce waste.

n+1 cooling technical

"with fully redundant power distribution and N+1 cooling"

n+1 cooling is a design for climate-control systems that provides one spare cooling unit in addition to the number required to handle normal demand, so the system can keep working if a single unit fails. For investors, it signals higher operational reliability and lower risk of production interruptions or data-loss events—like carrying a spare tire, it slightly raises costs but reduces the chance of a costly outage.

modified-gross colocation lease financial

"Structure: Modified-gross colocation lease with expense passthrough"

A modified-gross colocation lease is a data-center rental arrangement where a tenant pays a single base rent while the landlord covers most building-level costs, with a few specific expenses (like power overage or equipment maintenance) passed back to the tenant. Think of it as renting a furnished apartment where the landlord pays the building bills but you pay for extra utilities you use. Investors care because this mix of shared and tenant-paid costs affects predictable income, operating margins, and how much unexpected expense risk falls on the property owner.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 18, 2025 /PRNewswire/ -- WhiteFiber, Inc. (Nasdaq: WYFI) ("WhiteFiber" or the "Company"), a next-generation data center and colocation provider purpose-built for artificial intelligence (AI) and high-performance computing (HPC), today announced its subsidiary, Enovum Data Centers Corp., has executed a long-term colocation agreement with Nscale Global Holdings ("Nscale"), an AI infrastructure and cloud services provider serving enterprise and public sector customers.

The agreement secures the first 40 megawatt delivery of critical IT load at WhiteFiber's flagship NC-1 data center campus in Madison, North Carolina. The contract represents approximately $865 million in contracted revenue over the initial 10-year term, including contractual annual rate escalators and required non-recurring installation services, but excluding electricity and certain other costs passed through to the customer. Nscale is deploying this capacity to power the AI infrastructure of leading, global investment grade technology customers.

WhiteFiber is in advanced discussions with several leading lenders, and anticipates multiple institutional financing options that address both immediate NC-1 construction requirements and broader growth objectives. The contemplated construction facility is expected to feature an accordion or similar structure, enabling access to additional capital and financial agility to support new opportunities both at NC-1 and across WhiteFiber's broader development portfolio. To date, WhiteFiber has invested approximately $150 million of equity into the site, significantly de-risking the debt financing. The Company expects to formalize a credit facility in early Q1 2026 and expects to achieve financing terms at an attractive spread to yield on cost. WhiteFiber is actively evaluating potential investment-grade credit enhancement structures in connection with this deployment. If implemented, such arrangements are expected to support debt financing on attractive terms.

"WhiteFiber has taken a prudent and cautious approach to client selection. We took our time, reviewing multiple offers before selecting Nscale, a partner with a proven track record of hyperscaler deployments," said Sam Tabar, CEO of WhiteFiber. "This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads. We look forward to working closely with Nscale as we plan for the potential expansion of this deployment toward double its initial size by the end of 2027."

"This partnership demonstrates the effectiveness of our retrofit model and how WhiteFiber can meet the exacting standards of leading AI providers with hyperscaler requirements on an accelerated timeline," said Billy Krasskopoulos, President of WhiteFiber. "We take a customer-first approach to every engagement, ensuring our partners can deploy at scale with speed and confidence. Having secured our anchor tenant for NC-1 positions us to unlock additional development sites in our pipeline."

Key Terms of the Agreement

• Capacity: 40 MW of critical IT load, deployed in two 20 MW phases.
• Term: 10 years with 3 percent annual rate escalators on recurring service fees
• Total Contract Value: Approximately $865 million, inclusive of contractual annual rate escalators and non-recurring installation and build-related charges.
• Structure: Modified-gross colocation lease with expense passthrough and milestone-based installation payments. In addition to the rent, the customer pays PUE, electricity and pro rata property taxes.
• Ready-for-Service: Billing for the first 20 MW targeted to commence April 30, 2026, with the remaining 20 MW targeted to commence May 30, 2026
• Facility Design: Tier 3-equivalent, ultra-high-density, engineered to support up to 150 kW per cabinet with fully redundant power distribution and N+1 cooling; targeted average PUE of 1.3 or better
• Power Infrastructure: Supported by a 99 MW capacity agreement with Duke Energy, and management believes the site may support up to 200 MW of total electrical supply over time, subject to infrastructure upgrades and other conditions
• Additional Capacity: Nscale will receive priority notification of future capacity availability at NC-1 before such capacity is marketed to other customers.
• Development Outlook: NC-1 anchors WhiteFiber's U.S. colocation platform, and the commercial demand catalyzed through this agreement is already shaping our next sites. WhiteFiber is advancing additional campuses for second-half 2026 and 2027 delivery to support established customer interest

About WhiteFiber, Inc.

WhiteFiber is a provider of artificial intelligence ("AI") infrastructure solutions. WhiteFiber owns high-performance computing data centers and provides cloud services to customers. Our vertically integrated model combines specialized colocation, hosting, and cloud services engineered to maximize performance, efficiency, and margin for generative AI workloads. For more information, visit www.whitefiber.com. Follow us on LinkedIn and X @WhiteFiber.

‍About Nscale

Nscale is a European headquartered global hyperscaler engineered for sovereign-grade AI infrastructure, delivering compute to the generative AI market at scale. Through its fully vertically integrated suite of AI solutions and GW+ greenfield data centres across Europe and North America, Nscale enables customers to run efficient and scalable AI training, fine-tuning, and inferencing workloads.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of applicable securities laws. Such statements include, but are not limited to, statements about our ability to capture demand in the market, prospective customer demand, the timing for completion of our NC-1 facility. These statements are based on current expectations and involve risks and uncertainties that may cause actual results to differ materially. These statements may be identified by words such as "will likely result," "are expected to," "will continue," "will allow us to" "is anticipated," "estimated," "expected", "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. These forward-looking statements are based upon the current beliefs and expectations of the Company's management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. WhiteFiber undertakes no obligation to update any forward-looking statements except as required by law. All forward-looking statements speak only as of the date of this press release.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the forward-looking statements contained herein are reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of new information, future developments or otherwise occurring after the date of this communication.

Contacts for WhiteFiber
Investor Contact: IR@whitefiber.com
Media Contact: joanne@jam-comms.com

Contacts for Nscale
Media Contact: press@nscale.com
Investor Contact: IR@nscale.com

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SOURCE WhiteFiber, Inc.

FAQ

What is the size and term of WhiteFiber's colocation deal with Nscale (WYFI)?

The agreement is for 40 MW of critical IT load over a 10-year term.

How much revenue is the WhiteFiber (WYFI) contract with Nscale expected to generate?

The contract represents approximately $865 million in total contract value over the initial 10-year term.

When will WhiteFiber (WYFI) start billing Nscale for NC-1 capacity?

Billing for the first 20 MW is targeted to commence April 30, 2026, and the second 20 MW on May 30, 2026.

What facility and power specifications did WhiteFiber disclose for NC-1 (WYFI)?

NC-1 is Tier 3-equivalent, targeted PUE 1.3, supports up to 150 kW per cabinet and has a 99 MW Duke Energy capacity agreement.

How much equity has WhiteFiber (WYFI) invested in the NC-1 site so far?

WhiteFiber has invested approximately $150 million of equity to date in the NC-1 site.

Has WhiteFiber (WYFI) secured financing for NC-1 construction?

WhiteFiber is in advanced discussions with lenders and expects to formalize a construction credit facility in early Q1 2026, but terms are not yet finalized.