By Matt Field
Publication Date: 2026-03-30 06:00:00
One of Britain’s largest artificial intelligence (AI) startups is facing a backlash over plans to build a data centre for Microsoft after local officials raised fears it would drive up energy costs for residents.
Nscale, which counts Sir Nick Clegg as a board member, has been hit with objections in Essex over concerns the power-hungry energy demands of the site will strain the local electricity grid.
The planned data centre, built on a former scaffolding warehouse in Loughton, has been billed as “the UK’s largest AI supercomputer” and will be backed by 50 megawatts of AI processors.
One of its key customers will be Microsoft after the two companies signed a deal to develop AI power.
However, Loughton Town council officers have now demanded fresh evidence from Nscale to prove the development’s “substantial energy demand” will not “strain local grid capacity or increase costs for residents”.
The objection was sent to officials at Epping Forest District Council who are…
