Data center startup Nscale has secured a $1.4 billion financing package from major investors Pacific Investment Management Co. and Blue Owl Capital Inc. The funding will be used to purchase chips that Nscale plans to lease to customers, according to a company statement.

The financing represents one of the largest deals in the data center sector this year, highlighting strong investor appetite for infrastructure supporting artificial intelligence and cloud computing. Nscale's business model focuses on acquiring specialized hardware and providing it to companies needing computing power without the capital expenditure of purchasing equipment outright.

This substantial investment positions Nscale to compete with established data center operators and chip manufacturers. The deal underscores how institutional investors are increasingly backing infrastructure plays that support the AI boom, with Pimco and Blue Owl joining a growing list of financial firms targeting the expanding data center market.