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WhiteFiber Secures $865M AI Data Center Contract with Nscale, Anchoring Flagship North Carolina Campus

WhiteFiber Inc. (NASDAQ:WYFI) is one of the AI stocks under $20 to buy now. On December 18, WhiteFiber, through its subsidiary Enovum Data Centers Corp., finalized a landmark 10-year colocation agreement with Nscale Global Holdings. The partnership centers on the first 40 MW delivery of critical IT load at WhiteFiber’s flagship NC-1 data center campus located in Madison, North Carolina. The contract carries a total value of ~$865 million, which includes non-recurring installation services and 3% annual rate escalators, though it excludes pass-through costs such as electricity and property taxes.

The agreement is structured as a modified gross colocation lease and will be deployed in two distinct 20 MW phases. Billing for the initial phase is targeted to begin on April 30, 2026, with the second phase following on May 30, 2026. Nscale intends to use this capacity to power the AI infrastructure for major investment-grade technology customers worldwide. As part of the deal, Nscale will also receive priority notification for any future capacity that becomes available at the NC-1 site.

The NC-1 campus is a one-million-square-foot facility situated on 96 acres of a former industrial site. It is engineered to a Tier 3-equivalent standard, supporting ultra-high-density environments of up to 150 kW per cabinet with N+1 cooling and redundant power distribution. WhiteFiber Inc. (NASDAQ:WYFI) has already invested $150 million in equity into the project to de-risk future financing.

To support the construction requirements of NC-1 and broader growth, WhiteFiber Inc. (NASDAQ:WYFI) is in advanced discussions for institutional financing. The company expects to formalize a credit facility in early Q1 2026 that may include an accordion structure for additional capital.

WhiteFiber Inc. (NASDAQ:WYFI) designs, develops, and operates data centers and provides AI infrastructure solutions. The company offers hosting, colocation, and cloud-based HPC GPU services.

While we acknowledge the potential of WYFI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WYFI and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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