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Oct 18, 2026

Microsoft withdraws from Nscale's £2 billion UK AI data centre deal

Microsoft has pulled out of a partnership with Nscale to build what would have been the UK's largest AI data centre in Essex. Nscale says it remains committed to the project.

Oct 18, 2026·2 sources

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Top claims

▪National power grid officials informed Nscale that power supply for the Loughton AI data centre was not expected until the 2030s, despite initial expectations of power delivery by late 2026
▪Nscale filed for an initial public offering in the United States last month, listing Microsoft and Anthropic as expected major customers in its prospectus
▪Microsoft terminated its agreement with British cloud provider Nscale to fund a supercomputer and AI data centre in Loughton, Essex

Topics

Business & enterprise AI Microsoft AI infrastructure Compute, chips & AI infrastructure AI Data Center Gold Rush

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