Microsoft ditches residency plans at UK's largest data center over power supply concerns
Concerns over power supply and revelations that development of Nscale Essex site has not started prompted Microsoft's withdrawal.
Microsoft has abandoned its plans to establish the UK's largest AI data center due to power supply concerns. The project, originally slated to connect to the grid by 2027, is now projected to become operational by early 2030. The decision comes after a backlog of power capacity for UK data centers was revealed, rendering the site unviable.
The development, spearheaded by British company Nscale, was set to be constructed at a site in Loughton, Essex. However, recent controversy ensued when it was discovered that the site remained a scaffolding yard. Microsoft, the sole announced customer for the site, had planned to fund a supercomputer and become a key customer once the data center was up and running.
Nscale, which is seeking to become Britain's "sovereign" data center provider with an estimated valuation of $35 billion, stated that the withdrawal of Microsoft's customer has left the project in uncertainty. Despite this setback, Nscale remains committed to the Loughton project and is exploring alternative power sources for the site.
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