The acquisition strengthens the Iliad Group-backed Scaleway’s position as a cloud provider.

Cloud company Scaleway is acquiring high-performance computing (HPC) provider Qarnot to address growing cloud demand from businesses. Details of the transaction were not disclosed.

The acquisition strengthens Scaleway’s position as a cloud provider with HPC capabilities, enabling businesses to benefit from higher speeds and better AI performance. Scaleway and Qarnot are both headquartered in France.

Qarnot’s systems are able to recover or redirect up to 95pc of the heat produced by HPC servers into community services such as district heating networks, public facilities and industrial sites, without affecting computing performance, the company said.

Being significant electricity consumers, HPC systems produce excessive waste heat and require elaborate cooling mechanisms.