WhiteFiber (NASDAQ: WYFI) is back on traders’ radar on December 19, 2025, after news of a major hyperscale-style colocation agreement sparked a sharp move in pre-market trading. Multiple market outlets tied the move to WhiteFiber’s newly disclosed long-term contract with Nscale, an AI infrastructure and cloud services provider, centered on WhiteFiber’s NC-1 AI data center campus in Madison, North Carolina. [1]
The headline number is hard to ignore: an estimated ~$865 million in contracted revenue over an initial 10-year term, tied to 40 megawatts (MW) of critical IT load—delivered in two 20 MW phases. [2]
What happened with WhiteFiber stock on Dec. 19, 2025
In early Friday trading, WYFI was indicated sharply higher pre-market after the Nscale agreement details circulated widely across financial news wires and market-news desks. [3]
The move comes after a rough stretch for the stock: WYFI had recently printed a new 52-week low of $13.91 (Dec. 18) amid heavy volatility, before bouncing on the contract catalyst. [4]
Pre-market indications varied by data source and timestamp, but one widely cited tape showed WYFI closing at $14.30 on Dec. 18 and trading around $17.27 pre-market on Dec. 19 (about a ~21% jump at that moment). [5]
The deal in plain English: 40MW, 10 years, NC-1, and a big “AI colocation” signal
WhiteFiber disclosed in an SEC Form 8‑K that on November 22, 2025, its wholly owned subsidiary Enovum NC‑1 Bidco, LLC entered into a master services agreement with Nscale Services US Inc. and Nscale Global Holdings Limited for services at the NC‑1 colocation facility. [6]
Here’s what the filing and the accompanying exhibit say matters most:
- Capacity: 40 MW of information technology load, delivered in two 20 MW phases. [7]
- Economics: About $865 million in expected contracted revenue over the initial 10-year term, including escalators and non-recurring installation services. [8]
- Pass-through structure: Electricity and certain other costs are passed through rather than bundled into the contracted revenue figure. [9]
- Timeline: Billing for the first 20 MW is targeted to begin April 30, 2026, with the second 20 MW targeted for May 30, 2026. [10]
That “billing begins in 2026” detail is crucial. The contract is big, but it’s not an instant revenue switch—this is about visibility and financing leverage as much as it is near-term P&L.
Why this contract is a big deal (even beyond the $865 million headline)
1) It’s an “anchor tenant” moment for NC‑1
In its press release exhibit, WhiteFiber explicitly frames this as securing its anchor tenant for the NC‑1 campus, positioning the site (and the company) for additional development across its pipeline. [11]
WhiteFiber’s CEO also suggested the relationship could expand materially, pointing to a potential deployment expansion toward double the initial size by the end of 2027 (not guaranteed, but clearly part of the strategic narrative). [12]
2) The facility specs are engineered for the AI power-density era
NC‑1 is described as Tier 3-equivalent and ultra-high-density, designed to support up to 150 kW per cabinet, with fully redundant power distribution, N+1 cooling, and a targeted average PUE (Power Usage Effectiveness) of 1.3 or better. [13]
That’s not just marketing fluff. In AI infrastructure, “power density + cooling + efficiency” is the holy trinity—especially for modern GPU clusters that run hot, draw enormous power, and can turn mediocre data centers into expensive space heaters.
3) Power access is explicitly part of the story
WhiteFiber says the site is supported by a 99 MW capacity agreement with Duke Energy, with management believing the campus may support up to 200 MW over time, subject to upgrades and conditions. [14]
In 2025’s AI data center market, power availability can be the real bottleneck. A facility can be “ready” in every other way and still be functionally constrained without scalable utility capacity.
Financing and execution: the part the market will interrogate next
WhiteFiber says it has already invested roughly $150 million of equity into the NC‑1 site and expects to formalize a credit facility in early Q1 2026—a timeline that matters because high-density AI colocation builds are capital-intensive and schedule-sensitive. [15]
The company also references evaluating potential credit enhancement structures and suggests financing terms could be attractive relative to yield-on-cost—again, an important claim, but one investors will likely wait to see documented in final lender terms. [16]
Bottom line: the contract de-risks demand, but the market will still price delivery risk (construction, commissioning, power upgrades, and customer readiness).
Analyst reaction and WhiteFiber stock price targets
One of the most circulated notes on Dec. 19 came via coverage pointing to Citizens maintaining a Market Outperform rating and a $37 price target, framing the Nscale agreement as supportive of WhiteFiber’s development trajectory. [17]
That same coverage highlighted:
- An implied valuation framework around ~7x 2027E EV/EBITDA (as cited), and
- An estimate for NOI margins around ~90% on the deal, consistent with other HPC colocation agreements (as characterized in the report). [18]
Across broader consensus aggregators, price targets remain widely dispersed (which is common for newer, high-volatility infrastructure stories), but they point to significant upside if execution matches the growth narrative:
- MarketBeat shows a consensus rating of “Moderate Buy” with an average price target around $35.70 (high $51, low $25, per its methodology and coverage set). [19]
- StockAnalysis lists a consensus that it labels “Strong Buy” with an average target around $33.63 (targets shown roughly $25 to $38 in its displayed range). [20]
- A Nasdaq/Fintel-based roundup cited an average one-year price target near $37.48 (with a displayed range roughly mid‑$20s to high‑$40s, depending on included forecasts). [21]
Important reality check: analyst targets are not promises—they’re scenario-weighted opinions that can change quickly with financing terms, build milestones, customer concentration, and macro shifts in data center demand.
The “so what?” analysis: what this means for WYFI investors now
The bull case (why the market likes this)
- Demand validation: A large hyperscale-style customer commitment can validate NC‑1’s design specs and WhiteFiber’s go-to-market in AI colocation. [22]
- Revenue visibility: $865 million over 10 years is roughly $86.5 million per year on average (before considering phasing and escalators), which is substantial relative to WhiteFiber’s current size—especially if more phases or customers follow. [23]
- Financing leverage: Anchored contracts can unlock better project financing, potentially reducing the equity required per incremental megawatt.
The bear case (what can still go sideways)
- Timing risk: Billing is targeted to start late April/late May 2026—any construction or energization delays can push revenue recognition out. [24]
- Capital intensity + cash burn: WhiteFiber’s liquidity and financing pathway matter because AI data center builds are expensive, and markets punish funding uncertainty fast. [25]
- Concentration risk: An “anchor tenant” is great… but it also means a lot of expectations are now tied to one flagship campus and one major customer relationship. [26]
- Pass-through optics: Because electricity and certain costs are pass-through, headline contract value is not the same thing as “profit”—margins will depend on the exact lease terms, operating costs, and facility efficiency.
What to watch next in 2026
If you’re tracking WhiteFiber stock from here, the next catalysts are less about headlines and more about execution receipts:
- Final construction credit facility terms (WhiteFiber indicated early Q1 2026). [27]
- Build progress and commissioning updates at NC‑1.
- Confirmation of “ready-for-service” dates and whether billing begins on schedule (April 30 and May 30, 2026 targets). [28]
- Additional capacity commitments at NC‑1 (Nscale has priority notice for future capacity, per the exhibit). [29]
- Any signs of expansion toward larger deployments by 2027, which management explicitly teased as a possibility—not a certainty. [30]
References
1. www.benzinga.com, 2. www.sec.gov, 3. www.benzinga.com, 4. www.marketbeat.com, 5. stockanalysis.com, 6. www.sec.gov, 7. www.sec.gov, 8. www.sec.gov, 9. www.sec.gov, 10. www.sec.gov, 11. www.sec.gov, 12. www.sec.gov, 13. www.sec.gov, 14. www.sec.gov, 15. www.sec.gov, 16. www.sec.gov, 17. www.investing.com, 18. www.investing.com, 19. www.marketbeat.com, 20. stockanalysis.com, 21. www.nasdaq.com, 22. www.sec.gov, 23. www.sec.gov, 24. www.sec.gov, 25. au.investing.com, 26. www.sec.gov, 27. www.sec.gov, 28. www.sec.gov, 29. www.sec.gov, 30. www.sec.gov
