Microsoft pulls out of Nscale data center deal in UK amid power supply delays, report says
Microsoft has pulled out of Nscale's UK data center deal in Essex amid power supply delays, with grid officials expecting electricity only in the 2030s.
Microsoft has abandoned a planned data center project in Loughton, Essex, amid power supply delays, according to a report by Britain's The Telegraph. Microsoft, which was one of Nscale's two largest customers, recently terminated its agreement with the British cloud computing company for the Loughton data center. Nscale has reportedly encountered several delays in developing the facility, causing concerns about its projected 2030s operational timeline.
National power grid officials informed Nscale that they anticipated not supplying electricity to the data center until the 2030s, presenting a significant obstacle for the project. Despite Microsoft's withdrawal from the Loughton deal, Nscale maintains a positive relationship with Microsoft, stating that the issue does not affect their other agreements.
Nscale is currently investigating alternative power sources and exploring additional UK expansion sites while continuing to pursue an initial public offering (IPO) in the United States. The company serves major customers such as Microsoft and Anthropic, providing computing capacity, electricity infrastructure, data centers, and software for AI model training and operation.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 4 other outlets
- Microsoft scraps UK data centre deal with Nscale, Telegraph says businesstimes.com.sg
- Microsoft pulls out of UK data center deal with Nscale, Telegraph reports investing.com
- Microsoft pulls out of UK data center deal with Nscale: Telegraph economictimes.indiatimes.com
- Microsoft pulls out of UK data center deal with Nscale, Telegraph reports channelnewsasia.com
