British neocloud Nscale has secured $3.36 billion in convertible financing ahead of its planned U.S. IPO, the company announced on Friday. The round is led by hedge fund Third Point and includes $2.

36 billion available immediately, plus an additional $1 billion from existing investor Nvidia, which Nscale will receive in mid-November. The notes convert into equity once the IPO completes.

Nscale filed its IPO paperwork last week and is expected to be valued at $35 billion on the NYSE, according to the Financial Times, while Bloomberg reports the company is seeking to raise $3 billion in the offering.

The financing underscores the enormous capital required to build AI data centers.

Since being spun out of Australian cryptocurrency mining company Arkon Energy two years ago, Nscale has accumulated over $103 billion worth of contracts, according to its IPO filing.

The company is currently developing several large data center campuses, including in Norway and West Virginia.