Bitcoin mining offshoot Nscale loses Microsoft AI deal as power delay stretches into 2030s
Nscale has lost a major AI computing deal with Microsoft due to significant power infrastructure delays in the UK. This highlights the growing trend of bitcoin miners pivoting to AI infrastructure, a transition that requires massive capital and reliable energy access.
Why it matters
It illustrates the physical and logistical bottlenecks facing the AI industry as it competes for power capacity with traditional energy-intensive sectors.
The site in Loughton, Essex, about 6 miles northeast of London, was meant to house 23,040 Nvidia chips and supply 50 megawatts of computing to Microsoft’s Azure cloud by early 2027, according to the Guardian , which followed initial reporting by the Financial Times. UK Power Networks, which runs the local grid, told Nscale there may not be enough capacity until the early-to-mid 2030s.
Nscale announced the project last year alongside Microsoft, Nvidia NVDA $217.02 · Market Closed and OpenAI. When the Guardian visited in February, the site was still a working scaffolding yard. Nscale has since cleared the location and is looking at other ways to bring in power. It said its other Microsoft contracts remain in place.
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