Microsoft tells UK data centre developer ‘not possible’ as power supply delayed to 2030
Microsoft's withdrawal from the crucial data centre partnership with Nscale marks a significant hurdle for its operations in Essex. The agreement failed due to ongoing electricity connection delays, which must be promptly addressed. Despite this challenge, Nscale is determined to pursue its expansion plans in the UK and is exploring alternative energy options.
Microsoft has abandoned a major UK data centre project, leaving British AI infrastructure developer Nscale facing further challenges. Nscale had planned to operate its Loughton, Essex facility by next year, but the delay in power supply has derailed the project. The company had agreed to lease 23,000 Nvidia AI chips at the site, making Microsoft the anchor tenant.
However, electricity grid operators have stated that power won't be available until the 2030s, forcing Nscale to explore alternative energy sources and new locations. The setback comes as Nscale prepares for a potential US stock market listing, which could value the company at up to $35 billion. The withdrawal also raises questions about Nscale's expansion plans and investor confidence in AI infrastructure businesses.
Despite the challenge, Nscale remains committed to the project and the UK, while Microsoft did not comment on the decision.
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