Shares of WhiteFiber (WYFI 2.00%) jumped on Friday after the artificial intelligence (AI) infrastructure developer announced a long-term colocation agreement with cloud services provider Nscale Global Holdings.
By the close of trading, WhiteFiber's stock price was up more than 17%.
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A sizable and potentially highly lucrative contract
Under the terms of the deal, WhiteFiber will deliver 40 megawatts of critical IT load at its flagship NC-1 data center campus in Madison, North Carolina. The contract is expected to generate roughly $865 million in revenue over its initial 10-year term.
Nscale intends to use the capacity to provide AI infrastructure services to its investment grade tech clients.
"This agreement validates our strategy to engineer NC-1 to meet hyperscaler specifications and support the most advanced AI workloads," WhiteFiber CEO Sam Tabar said in a press release.
NASDAQ: WYFI
Key Data Points
WhiteFiber expects to receive attractive financing terms from its banking partners
WhiteFiber has already invested about $150 million into the development of the site. The high-performance computing company is in talks with multiple lenders to obtain financing to help cover the remaining construction costs.
WhiteFiber is also planning additional campuses for the second half of 2026 and 2027.
"Having secured our anchor tenant for NC-1 positions us to unlock additional development sites in our pipeline," WhiteFiber president Billy Krasskopoulos said.
