Microsoft abandons UK AI supercomputer as grid struggles to keep up
Tech giant walks away from flagship Essex project as power connection delays threaten to leave nation's AI ambitions waiting until the 2030s
Microsoft has decided to abandon its plans for Britain's largest AI supercomputer, citing lack of electricity to power it. The company terminated its agreement with AI infrastructure startup Nscale for a data center in Loughton, Essex, according to reports. The project, initially expected to launch in 2027, faced potential delays of up to the early 2030s for sufficient grid electricity.
Microsoft, planned to be the main customer for the 50MW facility, was set to use Nvidia GPUs in its Azure cloud services. However, the lack of grid capacity has left Nscale without a publicly announced customer. Despite the setback, Nscale remains committed to the Loughton project and alternative power sources. The UK government, which had highlighted the project as part of Microsoft's £22 billion UK investment, may face criticism for its misleading announcement.
Grid issues are not limited to Essex; Ofgem has proposed charging for connection requests to discourage speculative projects.
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