Microsoft has entered a partnership with ChronoScale, the cloud spin-off of data center developer Applied Digital, to deploy 50 megawatts of AI computing infrastructure in the United States.

The deployment will be built around Nvidia GB300 NVL72 systems and supported by liquid cooling infrastructure, the companies confirmed. The exact location of the facility has not been disclosed.

A New Player in AI Infrastructure

ChronoScale is a relatively young entity in the AI cloud market, having been formally spun out from Applied Digital only earlier this year.

Plans for the spin-off were first announced in January 2026, with Applied Digital working alongside Ekso Bionics Holdings, a company that develops exoskeleton solutions, to combine its cloud unit with Ekso into a newly formed AI cloud provider called ChronoScale Corporation.

The transaction was completed on May 5, 2026. Applied Digital retained approximately 97 percent ownership of ChronoScale following the spin-out, with Ekso holding the remaining shares.

According to ChronoScale's recently filed Annual Report, the company currently leases capacity across three third-party data centers.

Those facilities provide 1.5 megawatts in Minnesota, 5 megawatts in Utah, and 7.5 megawatts in Colorado.

The planned 50-megawatt Microsoft deployment would represent a dramatic expansion of ChronoScale's operational footprint relative to its current leased capacity.

What the Partnership Involves

The deployment will center on Nvidia's GB300 NVL72 systems, which represent the accelerated computing hardware at the core of the agreement.

The infrastructure will also incorporate liquid cooling, a technology increasingly standard in high-density AI compute environments.

ChronoScale's chief executive described the project as reflecting the company's broader strategic focus on high-density AI computing at scale.

"Microsoft is helping define the next era of AI, and we are proud to partner with them on the infrastructure required to support that transformation," said Cenly Chen, CEO of ChronoScale.

"This planned 50MW deployment reflects our focus on building AI infrastructure for the density and scale of accelerated computing. By combining Nvidia GB300 NVL72 systems, liquid cooling, and our full-stack infrastructure capabilities, we intend to deliver production-ready AI compute with the performance, reliability, and scalability our customers require."

Neither company provided a timeline for when the deployment is expected to come online or further details about the site selection process.

Financial Context for ChronoScale

The Microsoft partnership comes as ChronoScale navigates a period of revenue contraction. For the fiscal year ending May 31, 2026, the company reported revenue of USD 71.6 million, a decline of 15 percent compared to the prior fiscal year.

ChronoScale attributed the drop to the loss of a customer during the latter half of the previous fiscal year.

The company did not identify the customer in question or elaborate on the circumstances of the departure.

Despite the revenue decline, the Microsoft deal signals an effort by ChronoScale to reposition itself as a provider of large-scale AI infrastructure capable of serving major hyperscale clients.

Applied Digital's Broader Data Center Portfolio

Applied Digital, which focuses on high-performance computing facilities and cryptomining data centers, has been aggressively expanding its own infrastructure footprint independently of the ChronoScale spin-off.

According to its annual report, the company operates the Polaris Forge 1 campus in Ellendale, North Dakota. That facility carries 100 megawatts of IT capacity that came online in October 2025.

A second building at the same campus, offering 150 megawatts, was partially operational as of May 2026, and a third 150-megawatt data center at the site is under construction with a targeted launch date of 2027. CoreWeave is listed as a customer at the Polaris Forge 1 campus.

Applied Digital broke ground on Polaris Forge 2 in Harwood, North Dakota, in August 2024.

That campus will provide an initial 200 megawatts of capacity, with full operations expected by 2027. The site has been leased for 15 years by an unnamed US-based investment-grade hyperscaler.

The company also has projects in the southern United States. Delta Forge 1 will offer 300 megawatts and is located in Alexandria, Louisiana, according to an April investor presentation, though the company has described the site more broadly as a strategic southern US market.

Ground was broken on Delta Forge 1 in January 2026, and a hyperscale tenant has signed a 15-year lease for that facility as well.

Delta Forge 2, another southern campus offering 210 megawatts, is under construction and expected to be delivered in 2028.

Applied Digital has not disclosed the specific location of that project or identified the tenant. Polaris Forge 3 is a planned 300-megawatt campus in a northern United States region.

The project is under construction, has been leased, and delivery is expected to begin in the second half of 2027. Applied Digital has not named the tenant or provided a more specific location.

Industry Backdrop

The ChronoScale and Microsoft announcement arrives amid sustained investment in AI infrastructure across the technology industry.

The use of Nvidia GB300 NVL72 systems in the planned deployment places the project at the high end of current accelerated computing hardware, reflecting the growing emphasis on compute density as AI workloads grow in complexity and scale.

Liquid cooling has become a standard consideration for deployments of this nature, given the thermal demands of modern GPU clusters operating at high utilization.

ChronoScale's emergence from Applied Digital as an independent AI cloud provider, combined with a major partnership announced within months of its formal spin-out, marks a notable early move for the company as it seeks to establish itself in a crowded and capital-intensive market.