Fluidstack is in advanced talks to raise $1 billion in a new funding round that would value the company at $18 billion, according to a report citing sources familiar with the matter. The announcement follows a $50 billion agreement with Anthropic to construct AI data centers, a deal announced in late March. The London-based startup has seen rapid valuation jumps in recent months, from $7.5 billion in January to the current target of $18 billion, reflecting strong investor confidence in AI infrastructure growth.
The potential round would be led by existing backers, including Temasek and Bond, with participation from other institutional investors. Fluidstack’s expansion strategy hinges on scaling its modular data center technology, designed to support high-density AI workloads. The company has positioned itself as a critical supplier for major AI firms, including Anthropic, Microsoft, and Google, which have all committed to long-term contracts.
Industry analysts note that Fluidstack’s ability to secure such large-scale deals at short notice signals a scramble for AI-ready infrastructure. The startup’s competitors, including Vantage Data Centers and Equinix, are also racing to expand capacity, but Fluidstack’s focus on energy-efficient designs and rapid deployment has set it apart. The company claims its facilities can be operational within months, compared to years for traditional data centers.
Regulatory scrutiny remains a concern. The UK’s Competition and Markets Authority is reviewing Fluidstack’s recent acquisitions to ensure no anti-competitive practices. Meanwhile, the company is expanding into Singapore and Germany to meet demand from Asian and European AI firms. If the $1 billion round closes, Fluidstack plans to double its current 1.2 gigawatt capacity by 2027.
Source: techcrunch.com