Neocloud Nscale and Edge infrastructure company Armada have signed a Letter of Intent (LOI) to co-develop sovereign AI offerings.

The two aim to deliver sovereign AI solutions at both large scale and at the Edge, bringing full-stack Edge AI technology to multiple locations globally.

The partnership will use Armada's modular data center infrastructure and Nscale's GPU compute capacity to serve customers in both public and private sectors.

Using a "hub and spoke" model, Nscale's large data center locations will provide "superior unit economics and foundational capacity," and Armada's containerized data centers enable fast deployment at the Edge.

“There is increasing demand from enterprises and governments for operational AI, and meeting that need requires infrastructure that is scalable, distributed, and ultimately sovereign,” said Josh Payne, founder and CEO of Nscale. “By working with Armada, we will be able to offer customers a flexible foundation for deploying advanced AI workloads wherever they need to operate, without compromising performance, security, or control.”

“As AI adoption accelerates, organizations need infrastructure that can reach beyond centralized clusters, on Earth and even beyond,” said Dan Wright, co-founder and CEO of Armada. “One of Armada’s key differentiators is that we enable sovereign AI, with speed and scale. Partnering with Nscale allows us to extend our modular AI infrastructure into new global markets, supporting customers who require sovereign, high-performance compute.”

Previously backed by Microsoft, Armada raised $131 million in July 2025, coinciding with the launch of its megawatt-scale containerized data center, Leviathan. Part of Armada's Galleon product line, Leviathan is the "larger counterpart" to its Triton data center offering, with ten times the compute capacity and using liquid cooling.

In recent months, the company has worked with Eclipse on hydrogen-powered edge data centers, UnityCloud, the US Navy, and Alaska's Department of Transportation & Public Facilities.

Nscale is a neocloud offering AI compute capacity. The company is reportedly looking to launch an IPO, and is working with banks on a $2 billion fundraising round.

Nscale is also working with OpenAI to power its Stargate UK data centers, and developing Stargate Norway, with OpenAI renting space - and an eventual 100,000 GPUs - at a data center in Kvandal, outside Narvik, northern Norway, which is being developed by Aker. The company is also offering compute to Microsoft.