By Mike Wheatley
Publication Date: 2026-10-19 00:57:00
British neocloud startup Nscale Global Holdings Ltd.’s plans to launch an initial public offering in the U.S. have suffered a massive setback after its biggest customer Microsoft Corp. pulled out of a critical data center deal this weekend.
A report in The Telegraph today said Microsoft has terminated an agreement to rent artificial intelligence infrastructure at the company’s planned facility in Loughton, Essex. The project, which had already been beset by repeated construction delays, has effectively been derailed after U.K. grid officials told Nscale they would not be able to provide adequate power to the site until the 2030s.
The cancellation of the deal comes at a time when Nscale is also experiencing construction problems at another facility in Norway. That site has reportedly struggled with cooling system leaks, regulatory hurdles and a fire.
A spokesperson for Nscale told The Telegraph that the company’s relationship with Microsoft remains “strong and long-term,”…
