Tech giant Microsoft (MSFT) has signed a $6.2 billion deal with Nscale Global and Aker to secure access to high-performance AI infrastructure in Narvik, Norway. The agreement spans five years and will deliver powerful AI computing capacity in phases starting in 2026. This infrastructure will be powered entirely by renewable electricity and supported by secured grid capacity. Unsurprisingly, Microsoft’s Jon Tinter said that the deal shows the firm’s commitment to customers in Norway and Europe through the delivery of cutting-edge AI services.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Separately, Josh Payne, CEO of Nscale, said that this is one of the world’s largest GPU deployments and shows how Nscale can meet AI demand while staying efficient and compliant. Furthermore, Aker CEO Øyvind Eriksen called the deal a milestone that positions Narvik as a European hub for sovereign AI infrastructure by using Norway’s clean hydropower to support secure digital growth.
It is worth noting that the Aker-Nscale joint venture is expected to be officially established in Q3 2025 and that revenue from the deal will help cover the project’s costs. Meanwhile, Microsoft has also announced other major AI investments, including $30 billion in the UK and a $17.4 billion agreement with Nebius Group (NBIS). In addition, earlier this week, Microsoft revealed a separate project with Nscale to build a GPU-packed data center near London.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the last three months. In addition, the average MSFT price target of $625.78 per share implies 22.9% upside potential.
