British neocloud Nscale announced $3.36 billion in convertible-note financing on Friday ahead of its planned IPO later this year. The scale of the deal highlights the enormous funding demands of AI data center construction.

Led by hedge fund Third Point, the new investment includes $2.36 billion available to the company immediately and an additional $1 billion coming from existing investor Nvidia, which Nscale will receive in mid-November. The notes will convert into equity shares once the IPO is completed.

Nscale, which filed its IPO paperwork last week, is expected to be valued at $35 billion on the NYSE, Financial Times reported, and is seeking to raise $3 billion in the offering, according to Bloomberg.

Since it was spun out of Australian cryptocurrency mining company Arkon Energy two years ago, Nscale has amassed over $103 billion worth of contracts, according to its IPO filing.

The company is currently developing several large data center campuses, including in Norway and West Virginia.