Microsoft Corp (NASDAQ:MSFT) announced on Wednesday that it has signed a binding five-year customer agreement with Nscale Global Holdings Ltd and Aker ASA, kicking off commercial execution of scalable, renewable infrastructure for artificial intelligence (AI) across Europe.
The agreement, valued at about US$6.2 billion, secures Microsoft’s access to high-performance AI compute capacity to be delivered in staged deployments beginning in 2026.
Located in Norway, the project is expected to deliver the most advanced AI infrastructure powered by secured grid capacity and entirely renewable electricity.
“We’re inspired by how Nscale and Aker are advancing AI infrastructure powered by renewable energy, and we’re excited to work with European technology innovators to bring the benefits of scalable, sustainability-driven AI to Microsoft Cloud customers," Jon Tinter, president of Business Development and Ventures at Microsoft, said in a statement.
Microsoft noted that cash flow generated under the agreement will support funding of the project’s capital expenditures.
The company added that the joint venture between Aker and Nscale continues to advance as planned and is expected to be formally established during the third quarter of 2025, subject to fulfilment of closing conditions.
Microsoft shares were little changed at $508.28 in midday trading on Wednesday but have climbed more than 21% year to date.