Microsoft says ‘not possible’ to UK’s biggest data centre developer Nscale, after repeated delays, and electricity companies promising no power supply before 2030

Microsoft has withdrawn from a major UK data centre deal. The decision is a setback for British AI infrastructure developer Nscale, which had planned to make its Loughton, Essex, facility operational next year. The project has faced repeated delays, with electricity grid operators reportedly saying power won’t be available until the 2030s. Microsoft had agreed to lease 23,000 Nvidia AI chips at the site and was expected to become its anchor tenant.According to a report by The Telegraph, the withdrawal also comes as Nscale prepares for a potential US stock market listing that could value the company at up to $35 billion (£26 billion), raising questions about its expansion plans and investor confidence in AI infrastructure businesses.​

Microsoft withdraws from Nscale’s Essex data centre project

Microsoft recently informed Nscale that it was pulling out of the agreement announced last year. The deal was part of Microsoft’s broader UK investment commitments worth £22 billion,…