Nscale, a British cloud computing firm, announced on Friday that it has raised $3.36 billion in financing as it prepares for an IPO later this year. The deal takes the form of a convertible note, and the sheer size of the round highlights just how much capital is needed to construct AI data centers.

The round was led by hedge fund Third Point. Of the total, $2.36 billion is available to Nscale right away, while another $1 billion is being contributed by existing backer Nvidia and will be delivered to the company in mid-November. Once the IPO closes, the notes will be converted into equity shares.

Nscale filed its IPO paperwork last week. According to the Financial Times, the company is expected to carry a $35 billion valuation on the NYSE, and Bloomberg reports it is looking to raise $3 billion through the offering.

Since being spun out of Arkon Energy, an Australian cryptocurrency mining company, two years ago, Nscale has accumulated more than $103 billion in contracts, according to its IPO filing. The company is currently building out multiple large data center campuses, with locations including Norway and West Virginia.