Colo firm WhiteFiber has agreed a $865 million deal with Nscale that will see the neocloud take 40MW of space at an upcoming data center in North Carolina.

The ten-year deal will see Nscale rent space at WhiteFiber’s NC-1 facility in Madison, North Carolina. Nscale could double its deployment at the data center over the next two years.

WhiteFiber is the colo and high-performance computing (HPC) subsidiary of Bitcoin mining firm Bit Digital, which purchased the North Carolina site earlier this year.

The 96-acre site, located at 805 Island Drive, was acquired from textiles firm Unifi. The company announced the sale of the former manufacturing site in Rockingham County in April.

After more than 30 years in operation, Unifi announced it was closing the 946,585 sq ft (87,940 sqm) plant in Madison in February, laying off 91 people as part of a “footprint reduction.”

Bit Digital and WhiteFiber said at the time of the purchase that the site would offer 99MW in the short-term, upgradable to an eventual 200MW. The companies have invested $150m in the site, and said discussions are ongoing with lenders to finance the rest of the project.

"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."

Though an opening date for the data center has not officially been revealed, today's announcement said Nscale will start paying for 20MW in April 2026, with a further 20MW the following month. It will also get first notification of any future available capacity at the data center.

Bitcoin mining company Bit Digital acquired Enovum in November 2024. WhiteFiber is the company’s GPU cloud unit, operating out of Enovum facilities.

Founded in 2020, Enovum currently operates one site in Montreal, Canada, with two more in development in Québec City.

Nscale, meanwhile, has enjoyed quite a year, signing massive deals with Microsoft and OpenAI to provide access to AI compute. It was only formed in May 2024, spun out from cryptomining firm Arkon Energy.

It operates a 30MW data center in Glomfjord Industrial Park, Norway, with plans to double capacity to 60MW. The firm is planning another development in Fauske and Narvik, Norway, and London, UK.

The company is also leasing capacity from Verne in Iceland, Start Campus in Portugal, and Ionic Digital in Texas, with much of the capacity due to go to Microsoft and OpenAI.