We advised Ionic Digital on the transaction

Davis Polk advised Ionic Digital Inc. on its landmark 10-year, triple net lease agreement with Nscale for Ionic’s Cedarvale data center campus in Barstow, Texas.

Under the agreement, Nscale will lease the facility’s full 234 megawatt capacity to support its partnerships with global technology platforms. The lease represents approximately $2 billion of contracted revenue over the initial 10-year term.

Ionic Digital is a digital infrastructure and cryptocurrency mining company with operations across the United States. Ionic Digital focuses on delivering the next generation of energy-efficient, cost-effective computing through sustainable Bitcoin mining, while supporting grid flexibility by adapting operations to changing energy demand.

Nscale is a global hyperscaler engineered for sovereign-grade AI infrastructure, delivering compute to the generative AI market at scale. Through its fully vertically integrated suite of AI solutions and GW+ greenfield data centers across Europe and North America, Nscale enables customers to run efficient and scalable AI training, fine-tuning and inferencing workloads.

The Davis Polk real estate and infrastructure team included partners Brian D. Hirsch and David J. Penna, counsel Nick Soilleux and associate Holly Paige Constants. Members of the Davis Polk team are based in the New York and Washington DC offices.

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