Nscale said on October 1, 2026 that its Ward County, Texas site, an empty steel shell nine months earlier, is now a live AI data center delivering thousands of GPUs. The landlord, Ionic Digital, discloses in SEC filings that Nscale leases the site's full 234 MW of energy capacity under a 126-month triple-net lease. After an 18-month ramp, annual fixed rent at 234 MW is $182.5 million. Nscale is obligated to lease another 89 MW at the same price per MW when it becomes available. [Source 1] [Source 5]
Evidence: Nscale release dated October 1, 2026; Ionic Digital Form 8-K dated September 10, 2026; Ionic Digital Form 10-Q for the quarter ended June 30, 2026, filed September 1, 2026; Nscale financing release dated August 31, 2026; Ionic Digital final prospectus filed July 28, 2026.
Nscale said on October 1, 2026 that nine months earlier its Ward County site was an empty steel shell in West Texas, and that it is now a live AI data center delivering thousands of GPUs. The release does not give a MW figure for what is operating. [Source 1]
In its August 31, 2026 financing release, Nscale described Ward County as a purpose-built AI campus supporting approximately 200 MW of IT load, deploying NVIDIA GB300 and Vera Rubin systems with closed-loop direct liquid cooling. It said it closed delayed draw term loans of up to $1.85 billion for the site, with J.P. Morgan as lead. [Source 4]
Ionic Digital owns the Ward County property, which it previously used for bitcoin mining. Its prospectus says Nscale leases approximately 50 acres and access to 234 MW of power under a 126-month triple-net lease, with Nscale responsible for rent, taxes, insurance and maintenance. [Source 5]
The prospectus says rental payments were scheduled to start August 1, 2026. After an initial 18-month ramp, annual fixed rent at 234 MW capacity is $182.5 million, or $250.5 million with the additional 89 MW, with 3% annual increases after the fifth year. [Source 5]
Ionic's 10-Q says the lease term runs through January 2037, with one ten-year renewal option and a right of first refusal for Nscale on additional power capacity. It puts total contracted revenue at about $1.9 billion, rising to a potential $2.6 billion with the additional 89 MW. Ionic recognized $43.8 million of leasing revenue in the second quarter of 2026. [Source 3]
The prospectus also says Nscale has granted Microsoft an option for additional power at the property, if it becomes available, starting in the second half of 2027. [Source 5]
On September 10, 2026, Ionic said ERCOT had provisionally classified its request for the remaining 466 MW needed to reach 700 MW at Ward County as Base Load in the Batch Zero process. Ionic targets energizing that tranche by the end of 2027. The classification is subject to ERCOT verification and final determination. [Source 2]
This is our analysis.
**A rare disclosed rent for powered AI capacity.** $182.5 million a year for 234 MW works out to about $780,000 per MW per year, or about $65 per kW per month. That is our arithmetic on Ionic's disclosed figures. The MW basis is the site's energy capacity, not critical IT load, and the rent covers powered land and existing buildings under a triple-net structure. It is not a colocation or wholesale data center rate, which would include fit-out and operations.
**Two capacity numbers, two definitions.** Ionic says 234 MW of energy capacity. Nscale says about 200 MW of IT load. Those are different bases and should not be compared or added.
**Former mining sites are converting fast.** Ward County went from mining to an operating AI site within a year of lease signing, according to the two companies. Buyers looking for near-term AI capacity in Texas should look at powered former mining sites, and ask who funds the fit-out and what cooling and redundancy are in place.
**Expansion is not available capacity.** The extra 89 MW is already committed to Nscale, and Microsoft holds an option through Nscale on additional power. Growth to 700 MW depends on ERCOT and PUCT outcomes.
The reviewed sources do not disclose how many MW are operating today, the GPU end customers on the site beyond Microsoft's option, Nscale's pricing to its own customers, the redundancy level, or the rent during the 18-month ramp. Ionic's filings describe Microsoft's option but not its size or terms.
SharonAI disclosed that two Australian subsidiaries signed a senior secured term loan facility of up to US$356 million on September 28, 2026. Proceeds fund GPUs, servers and related equipment at contracted data center facilities for a customer GPU compute contract. Facility A carries 7.25% rising to as much as 9.95%. Facility B carries a fixed 9.95%. [Source 1] [Source 2]
Read the analysisCleanSpark's subsidiary CSDC Finance I LLC completed a $2.276 billion senior secured notes offering on September 25. The debt carries a 7.875% coupon, was issued at 98.5% of principal and matures October 1, 2031. The filing locates the financed facility in Sandersville, Georgia. [1]
Read the analysisSenate Republicans are considering taking up the Ratepayer Protection Act during the week of September 28, according to September 24 reporting by POLITICO, reproduced by The Politic Review. The report describes a possible floor move, not a confirmed passage vote. The Senate press gallery's posted schedule reviewed September 25 identifies a September 28 vote on college sports legislation, not a confirmed vote on this bill. [1, 2]
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