The development follows a period of heightened interest in companies that build and operate infrastructure for artificial intelligence applications. WhiteFiber designs, develops and operates data centers, and its portfolio includes hosting, colocation and cloud-based high-performance computing (HPC) GPU services aimed at enterprise and technology clients. The company’s latest contract underscores a strategy of securing long-term revenue streams with multinational technology customers that require large amounts of power and cooling for AI training and inference.
Analyst coverage continues to adjust as new information becomes available. On 24 December 2025, B. Riley Securities lowered its 12-month price target on WhiteFiber shares to US$40 from a previous US$44. The firm maintained a Buy rating but trimmed its financial projections, citing more conservative assumptions for the growth rate of cloud-service demand. Specifically, B. Riley reduced its second-quarter 2026 earnings before interest, taxes, depreciation and amortization (EBITDA) forecast to US$17.9 million from US$19.5 million and cut its full-year 2026 EBITDA estimate to US$92.7 million from US$99.5 million.
Despite the reduced estimates, the analyst note highlighted that revenue expectations linked to the Nscale contract are consistent with management guidance. The brokerage also acknowledged that large, long-term agreements can provide a buffer against short-term variability in AI-related demand, even as it adopted a more cautious stance on near-term cloud spending by enterprise customers.
WhiteFiber’s emphasis on a campus model is designed to deliver economies of scale by clustering high-density computing capacity at a single location. According to publicly available utility-connection data, campuses with the ability to expand power delivery are increasingly attractive to AI developers, who often require rapid scaling beyond their initial allocations. Industry research from the U.S. Department of Energy indicates that AI training clusters can consume several megawatts each, reinforcing the value of sites that can grow to 200 MW or more. Historical trading data from Nasdaq show that data-center operators with long-duration contracts tend to exhibit lower earnings volatility than firms reliant on short-term cloud-service subscriptions.
The structure of the credit facility under negotiation was not disclosed, but securing additional financing is regarded as integral to funding the balance of construction at NC-1. WhiteFiber stated that the equity already deployed covers land, initial infrastructure and reserve requirements, while debt proceeds would support further build-outs aligned with the billing schedule for Nscale. By matching capital deployment to revenue milestones, the company aims to manage leverage while preserving the flexibility to add incremental blocks of capacity as tenant demand emerges.
For Nscale, the arrangement provides an avenue to deliver data-center services to global technology customers in the United States. The London-headquartered firm specializes in colocation solutions for enterprises that need geographic diversity and low-latency connections to East Coast population centers. The NC-1 campus, located within driving distance of major fiber routes and regional power generation assets, was selected for its combination of available land, robust electrical infrastructure and access to renewable-energy options, according to information released at the time of the announcement.
Market observers are watching whether WhiteFiber’s approach can capture share in a sector where hyperscale cloud providers and specialized colocation operators are competing for the same AI-driven workloads. While the 40 MW commitment represents a meaningful addition to WhiteFiber’s contracted backlog, the company faces execution risks common to large construction projects, including supply-chain constraints and potential delays in utility interconnections. The revised EBITDA targets published by B. Riley reflect those uncertainties, though the brokerage’s continued Buy rating suggests confidence in management’s capacity to deliver on schedule and within budget.
Shares of WhiteFiber trade on Nasdaq under the ticker symbol WYFI. The stock has drawn investor attention as part of a broader search for companies positioned to benefit from the expansion of AI infrastructure. Whether the firm’s pipeline beyond NC-1 will translate into further contracts remains to be seen, but the current agreement with Nscale provides a tangible revenue base against which future performance can be measured.
WhiteFiber has not issued updated guidance since the December announcement. Management has indicated that it will provide additional detail on financing progress and construction timelines during its next scheduled earnings call. In the interim, the market will continue to monitor developments at NC-1, the finalization of the expected credit facility and any additional customer commitments that could push campus utilization toward its projected 200 MW ceiling.
Crédito da imagem: WhiteFiber Inc.
