Microsoft tells UK data centre developer ‘not possible’ as power supply delayed to 2030
Microsoft has withdrawn from a major data center project in the UK due to significant delays in power grid availability, which is not expected until the 2030s. This setback affects Nscale, an AI infrastructure developer currently preparing for a potential stock market listing.
Why it matters
The incident highlights the growing tension between the massive energy demands of AI infrastructure and the limitations of existing national power grids.
Microsoft has withdrawn from a major UK data centre deal. The decision is a setback for British AI infrastructure developer Nscale, which had planned to make its Loughton, Essex, facility operational next year. The project has faced repeated delays, with electricity grid operators reportedly saying power won't be available until the 2030s. Microsoft had agreed to lease 23,000 Nvidia AI chips at the site and was expected to become its anchor tenant.According to a report by The Telegraph, the withdrawal also comes as Nscale prepares for a potential US stock market listing that could value the company at up to $35 billion (£26 billion), raising questions about its expansion plans and investor confidence in AI infrastructure businesses.Microsoft withdraws from Nscale's Essex data centre projectMicrosoft recently informed Nscale that it was pulling out of the agreement announced last year.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in