{
  "id": 15408571,
  "title": "Microsoft drops huge AI datacentre project in Essex over power supply concerns",
  "url": "https://urgent.news/2026/10/18/microsoft-drops-huge-ai-datacentre-project-in-essex-over-power-supply",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-18T12:28:45.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/uk-news/2026/oct/18/microsoft-drops-huge-ai-datacentre-project-in-essex-over-power-supply-concerns"
  },
  "original_language": "en",
  "account": "Ministers hailed Nscale's AI datacentre project in Essex as the country's largest when it was first announced in 2025. However, Microsoft, the planned anchor tenant, has now pulled out of the project due to power supply concerns. The development, which was set to open in Loughton, Essex next year, faced doubts even before Microsoft's decision, with the Guardian reporting earlier this year that the site was still an operational scaffolding yard. Microsoft's departure follows recent revelations that power supply issues could delay the project's launch. The UK government had previously emphasized the Loughton project as part of its AI strategy in 2025, describing it as the \"largest UK sovereign AI datacentre.\" The loss of Microsoft as a customer leaves Nscale without any publicly announced customer for the Essex data center. While Microsoft remains committed to a separate project in Norway, Nscale's ambition to float on Wall Street with a potential valuation of $35bn (£26bn) could be impacted by the loss of its anchor tenant. An Nscale spokesperson stated that the company remains committed to the Loughton project and is exploring alternative power sources for the site, while also pursuing other expansion sites in the UK.",
  "summary": "Development by UK firm Nscale heralded by ministers as largest of its kind in the country loses its anchor tenant The development of a huge AI datacentre hailed by the UK government has received a fresh setback after Microsoft pulled out of the project over concerns about power supplies. The development by the British firm Nscale, heralded by ministers as the country’s largest AI datacentre when…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}